German on-line bank N26 has launched an insurance coverage service.
N26
LONDON — German digital bank N26 is getting into insurance coverage.
The Berlin-based fintech stated Thursday that it is launching insurance coverage insurance policies for smartphones in partnership with native start-up Simplesurance.
Plans begin from 6 euros — about $7.18 — a month, primarily based on the unique worth of the client’s telephone. Users will have the ability to purchase protection, handle their plans and provoke claims for issues like water harm and theft.
“When it involves insurance coverage, clients as we speak nonetheless should deal with advanced and outdated processes and paperwork,” stated Valentin Stalf, N26’s co-CEO and founder.
“The house has lengthy been ripe for disruption and we at the moment are providing a one-stop digital resolution for our clients insurance coverage wants.”
For now, the function will solely be out there in Germany. But N26, which was last privately valued at $3.5 billion, stated it plans to roll the product out to extra international locations in Europe and increase it to incorporate different forms of insurance coverage corresponding to residence, life and journey.
Founded in 2013, N26 is one in all Europe’s largest so-called “neobanks,” a time period referring to the wave of latest banking gamers trying disrupt incumbents with app-only checking accounts. Its rivals embody the likes of Chime, Revolut and Monzo.
Though N26 already has paid subscription accounts which bundle journey and smartphone insurance coverage, that is the primary time the corporate has supplied such a product to all its customers, and marks a problem to established suppliers corresponding to Allianz and Axa.
It might present the loss-making agency with a brand new technique to generate income from its customers. N26 says it can take a small lower from every buyer that will get referred to its insurance coverage companions. Last 12 months, the agency misplaced 110 million euros, barely down from a 165 million euro loss in 2019.
Maximilian Tayenthal, who runs N26 alongside Stalf as its co-CEO, advised CNBC in January that the corporate was thinking of making its first acquisition, in a bid to increase its providing to incorporate new potential companies corresponding to investments.
N26’s entry into the insurance coverage market comes as buyers are pumping tons of of thousands and thousands of {dollars} into digital insurance coverage start-ups. U.Ok. on-line insurer Zego lately raised $150 million at a $1.1 billion valuation, whereas German counterpart Wefox is reportedly looking for a $250 million funding at a $2 billion valuation.
