getsafe Secures $30M Series B Funding - Fintech News

Getsafe, the digitally focused insurance company that began by offering a mobile application for household contents insurance, has successfully secured $30 million in its Series B funding round.

This investment round was spearheaded by Swiss Re, a leading global reinsurer. Current investors, including Earlybird and CommerzVentures, also contributed to the funding. Since its establishment in May 2015, Getsafe has now raised a combined total of $53 million.

The company intends to supplement its Series B funding with an additional investment phase, planned to be finalized before the launch of products operating under its own insurance license, which is anticipated in the first six months of 2021.

Positioning itself as a modern insurance provider targeting millennials, Getsafe initially provided adaptable home contents insurance, alongside supplementary “modules” like coverage for personal belongings away from home and protection against accidental damage. Currently available in both the U.K. and Germany and accessible through a user-friendly app, the service allows customers to customize their coverage and pay only for the protection they require.

According to co-founder and CEO Christian Wiens, Getsafe presently serves 150,000 active customers, with 90% of its users representing first-time insurance purchasers. “We facilitate more insurance policies to individuals new to insurance in Germany than established companies such as Allianz, Axa, and Zurich,” he states.

Wiens explains that the move towards obtaining its own insurance license will accelerate the insurtech’s ability to develop and introduce innovative products. “Operating with an insurance license is preferable, as acting solely as a broker hinders innovation,” he notes, emphasizing that insurance is a “long-term endeavor.”

“Our initial expectation was to navigate regulatory processes more quickly and leverage existing software solutions, but we ultimately had to construct the majority of our technology infrastructure from scratch,” says Wiens.

The recently established collaboration between Getsafe and Swiss Re is already yielding positive results. Last month, the two companies launched a smartphone-optimized digital car insurance product. “Users can easily acquire insurance, submit claims, and manage their policies in real time, all through the Getsafe app.”

“Coverage can be cancelled or paused at any time, for example, if a vehicle is not used during the winter or on summer vacations, simply by deactivating it,” clarifies the Getsafe CEO.

The app also allows users to add up to five additional drivers to their policy at no extra cost. “In 2021, we are planning to pilot a pricing model based on driving habits,” Wiens adds. “We [will] monitor driving behavior through the app, offering savings to those who demonstrate safe driving practices.”