N26 Expands Services with N26 Insurance

N26, a prominent fintech startup, is introducing N26 Insurance, a new initiative designed to provide insurance products directly through its mobile application and website platforms.

The initial offering is a smartphone insurance plan specifically tailored for customers in Germany.

Future Insurance Products Planned

However, N26’s ambitions extend beyond smartphone coverage. The company is actively developing a broader range of insurance solutions.

• Private liability insurance is in development.
• Home insurance is also being prepared for launch.
• Life insurance options are being created.
• Pet insurance is planned as a future offering.
• Coverage for bicycles, electronics, and significant purchases is also under consideration.

Streamlined Insurance Management

The core concept revolves around enabling users to procure coverage, oversee their policies, and submit claims all within the familiar N26 app interface.

Leveraging the pre-existing personal information held by N26, onboarding for new insurance products is anticipated to be significantly simpler than establishing accounts with separate insurance providers.

Strategic Partnerships

N26 is not aiming for an immediate transformation into a full-fledged insurtech company.

Instead, the company is strategically collaborating with established partners, such as Simplesurance, to deliver these insurance products.

A Marketplace-Driven Approach

“A major focus for Q1 and Q2 is building out the marketplace,” stated co-founder and CEO Valentin Stalf some months ago.

“We initially attempted to fully integrate the entire experience.”

N26 Insurance represents the first tangible outcome of this new, API-driven strategy.

Partners will have the capability to integrate their offerings independently, while N26 will facilitate the seamless sharing of KYC (Know Your Customer) data and the transfer of funds between N26 and its partners.

Addressing Fintech Challenges

Stalf highlighted that many fintech startups experience low engagement frequency, citing mortgages as an example of a financial product configured once and rarely revisited.

Recognizing the high customer acquisition costs associated with such models, N26 aims to provide support in this area.

For example, following an online bicycle purchase, N26 could proactively suggest a relevant bicycle insurance product.

Smartphone Insurance Pricing

The cost of the phone insurance plan, launched today, will be determined by the value of the insured device.

Higher-value phones will naturally incur more expensive insurance premiums.

N26 provides the option of annual plans for cost savings.

Integration with Existing Plans

This insurance offering also reinforces N26’s freemium model.

The company provides both free and paid accounts, with paid options starting at €4.90 monthly.

The premium N26 Metal plan, priced at €16.90 per month, already incorporates phone insurance as a benefit.

Incentivizing Plan Upgrades

Customers seeking phone insurance may be motivated to upgrade to N26 Metal, gaining access to additional features like travel insurance alongside their device protection.

Recent Plan Revamps

N26 began revising its plan structure in November 2020 with the introduction of the N26 Smart mid-tier plan.

Currently, in Europe, new free account holders do not automatically receive a physical debit card; instead, they are provided with a virtual debit card compatible with Apple Pay or Google Pay.

A one-time €10 fee is required for a physical card, or users can subscribe to N26 Smart for €4.90 per month.

Driving Profitability

Expanding the product range within the app and encouraging users to subscribe to paid plans are expected to significantly contribute to N26’s profitability.

Having experienced substantial growth in recent years, the company is now concentrating on consolidating its business operations.