Getsafe, Europe’s neo-insurer based in Germany, has entered into an agreement to acquire the German customer base of French insurtech Luko.
With over 550,000 customers across Germany, the UK, France, and Austria, Getsafe “is rapidly expanding its reach in Europe.”
The acquisition covers Luko’s entire German insurance portfolio of 50,000 policies, “which includes Liability, Pet, and Home Contents insurance.” The German Federal Financial Supervisory Authority (BaFin) “approved the transaction in late September 2023, and the parties have agreed not to disclose the terms.”
While other Insurtechs are “moving away from the Direct-to-Consumer model and are instead selling through traditional brokers, Getsafe has seen strong and profitable growth by focusing on its fully digital proposition for a younger customer segment of Europeans between 20-40 years old.”
Christian Wiens, CEO and founder of Getsafe, said:
“Traditional insurance is broken for digitally savvy customers. They would never step into a broker’s office. We aim to become the go-to platform for 100 million young Europeans who will spend €300 billion on insurance in the next decade.”
Getsafe operates as “a fully digital, mobile-first insurance company. 35% of its customers use the Getsafe app every month, which has resulted in strong engagement and growth.”
Getsafe’s revenue per customer has been “doubling every year since Getsafe’s inception, as the young audience has an uncovered need for P&C, Life, and Health insurance products.”
Christian Wiens adds:
“By eliminating intermediaries such as brokers and agents, we achieve much higher customer satisfaction scores than the industry average. Additionally, our direct-to-consumer business runs with higher margins and is already operating profitably in our core markets.”
The acquisition of Luko Germany is “an important milestone in Getsafe’s history.”
Wiens also mentioned:
“This deal is a first for us, and we are more than happy to welcome Luko’s German customers to the world of Getsafe. We built our proprietary tech platform with scalability in mind from day one. The post-merger integration took us only a few weeks. From a technical perspective, integrating Luko’s customer base was as easy for us as launching a new product.”
