Sweden-based Insurtech Hedvig has announced an expansion across Europe starting with Denmark. Hedvig reports that hundreds of Danes have signed onto Hedvig’s waiting list for a new type of home insurance.
The digital-first insurance platform claims that it can manage claims in about eight minutes. Hedvig says its revenue grew by 200% in 2o2o. To date, Hedvig has insured approximately €8 billion worth of homes and this figure is predicted to grow by about half a billion euros month over month for 2021.
Hedvig shares that 8% of all new home insurance policies in Sweden in 2020 were signed on its platform, making it the second fastest growing insurance company in the country, behind Folksam. Hedvig insures 55 000 individuals, with 40% of its growth being organic or by recommendation.
Lucas Carlsén, co-founder and CEO of Hedvig, says they are creating a new industry standard for home insurance.
“We’ve built a product that gives people entitlement rather than hope when it comes to their home insurance. Our statistics show that two thirds of Hedvig customers have had a previous insurance solution with a traditional insurer and made a switch to Hedvig. The demand for our solution is unquestionable, and we are thrilled to kick off Hedvig’s international expansion starting with Denmark.”
Hedvig uses Lemonade as a benchmark noting that its rating on Trust Pilot has reached 4.8 out of 5, almost double Lemonade’s rating.
Hedvig takes a 25% fixed fee from the insurance premium and the remainder goes into a claims pool that is allocated out to Hedvig users. At the end of each fiscal year, if the claims pool is in surplus, the excess funds will go towards charity. Hedvig says it does not earn more by paying out less. Hedvig partners with reinsurers such as SCOR in case of major hazards.
Hedvig is a full-stack insurance carrier with a valid license that works across the European Union. Hedwig did not report its timing for launch in other European countries.
Launched in Sweden in 2018 and Norway in 2020, the company has secured a total $23 million in funding to date. Its latest funding round was in October 2020, when it raised an additional €7.8 million a €54 million valuation.