The acquisition, approved by the German Federal Financial Supervisory Authority (BaFin) in late September 2023, encompasses Luko’s entire German insurance portfolio, comprising 50,000 policies, spanning Liability, Pet, and Home Contents insurance.
Getsafe, known for its fully digital proposition, has been rapidly expanding its reach across Europe, boasting a customer base exceeding 550,000 in Germany, the UK, France, and Austria. Unlike some Insurtechs veering away from the Direct-to-Consumer model in favor of traditional brokers, Getsafe’s strategic focus on a fully digital experience has resulted in robust and profitable growth, particularly among the younger demographic of Europeans aged between 20-40 years old.
The terms of the acquisition remain undisclosed, as per the agreement between the involved parties. With this move, Getsafe strengthens its position as a dynamic player in the European insurance landscape, positioning itself for continued growth and innovation in the competitive market.
Speaking about the acquisition, 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.”
He continued: “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 added, saying: “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.”
Pictured: Christian Wiens, CEO and founder of Getsafe
Author: Joanna England