Cover Genius, a global embedded protection technology provider, has acquired Berlin-based insurtech Friendsurance, expanding its presence in European digital insurance distribution as banks seek new sources of non-interest revenue, according to an announcement.
Financial terms of the transaction, which is effective immediately, were not disclosed.
The deal combines Cover Genius’s global embedded protection infrastructure with Friendsurance’s digital bancassurance technology and regulatory expertise in Europe, particularly across the DACH region covering Germany, Austria, and Switzerland, per the announcement.
“European banking represents one of the highest-conviction growth opportunities in embedded protection,” Cover Genius CEO and co-founder Angus McDonald said.
Banks across the DACH region are under pressure to move beyond legacy cross-selling and deliver protection that integrates into their customers’ daily financial lives
Friendsurance has spent more than a decade developing technology that allows banks and insurers to integrate insurance products into digital banking experiences.
Its infrastructure incorporates PSD2 open-banking capabilities and systems designed to comply with regional GDPR requirements.
The Friendsurance team will join Cover Genius following the acquisition, with existing and prospective customers gaining access to the combined group’s protection products and infrastructure.
Cover Genius said the acquisition would support what it describes as “Bancassurance 2.0,” in which insurance and protection products are integrated directly into digital banking platforms rather than distributed primarily through traditional cross-selling channels.
“We built Friendsurance to solve a clear friction point. Banks want to offer modern, customer-centric protection, but legacy infrastructure and compliance make it incredibly difficult,” Friendsurance co-founder and CEO Tim Kunde said.
By joining the Cover Genius team, our people and our technology gain the global scale and resources needed to truly transform the market.
The transaction adds a European technology and regulatory hub to Cover Genius, which operates in more than 60 countries and all 50 U.S. states.
The company provides embedded protection infrastructure to digital platforms including Klarna, Revolut, Stripe, Priceline, Agoda, Booking.com, eBay, and Uber, among others.
Cover Genius said it has protected more than 73 million customers through 240 million policies and generated $3.2 billion in gross written sales.
Friendsurance, meanwhile, works with financial institutions and insurance companies in Europe, providing technology for embedding insurance products into banking services and supporting insurers’ digital distribution.