German digital insurtech startup, Getsafe, has taken a bold step by acquiring Luko Germany, a segment of the French insurtech firm Luko. This move follows Luko's acquisition by UK-based insurer Admiral Group, a deal that excluded Luko's German and Spanish operations. Getsafe's acquisition of Luko Germany is a pivotal moment in its journey.
The acquisition, which recently received approval from BaFin, Germany's financial regulatory authority, is not merely a matter of licenses. It underscores Getsafe's ambitious growth agenda. With the incorporation of Luko's German portfolio, comprising 50,000 policies encompassing liability, pet, and home contents insurance, Getsafe's customer base in Europe has surged to 550,000, up from 400,000 earlier this year when it expanded into France.
The financial terms of the deal remain undisclosed, leaving questions about Luko's financial obligations. However, it offers a new home for a German customer base that Admiral Group had no intention of inheriting.
Christian Wiens, CEO and founder of Getsafe, highlighted the seamless technical integration of the acquisition, comparing it to the introduction of a new product. Getsafe adopts a direct-to-customer approach, targeting a younger demographic with a mobile-centric strategy. Their app boasts a monthly usage rate of 35%, with 10% of users engaging in claims, while the remaining 90% explore various insurance options and expand their knowledge about protection.
In contrast, Luko's focus on single-product home insurance limited its capacity to offer additional products. Getsafe's multi-product strategy has proven highly successful, resulting in increased revenue and improved operational profitability in its core markets.
Getsafe, founded by Christian Wiens and Marius Simon in 2018, is a digital insurance company dedicated to creating a better insurance experience. By replacing complexity and manual paperwork with smart bots and automation, customers can file claims or change their coverage in real-time with just a few clicks. Getsafe aims to make insurance simple, fair, and accessible.
Christian Wiens, CEO and founder of Getsafe, emphasized the need for innovation in the insurance industry: "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. 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."