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German InsurTech companies are getting more popular than ever

German InsurTech companies were more popular with investors than ever before in 2018. More than $ 173 million was invested in startups in the digital insurance industry, according to the findings of an InsurTech funding study by Finanzchef24.

Digital direct insurers received the most investments

Especially digital direct insurers aroused the interest of investors in Germany. Five out of a total of twelve financings totaling at least $ 92 million went to startups with the Direct Insurer or Tied Agent business model.

This continued the 2017 trend, which has already attracted $ 64 million in this sector. The highest publicly known single financing with a good 30 million US dollars was received by the company Coya. InsurTech, which only received the Bafin license in June 2018, offers to conclude home contents insurance via a smartphone app.

Comparison platforms and technology providers unchanged in trend

The euphoria over digital insurance files was noticeably weaker in 2018 compared to the previous year. Only those companies in the field of insurance management who have managed to sustainably adapt their business model have been able to hold their own in the market. These InsurTechs see their future in the development of innovative technologies such as comparison platforms or software for brokers and insurers.

Also international high volumes for digital insurers and suppliers of new technological products.

This trend is also apparent outside of Germany, with much higher investment going into InsurTech, especially in the USA. For example, the American startups Oscar and Cambridge were in the international ranking with funding of $ 500 and more. Oscar offers health insurance for individuals and businesses. Cambridge develops software solutions for the collection of traffic telematics data.

With $ 200 million and $ 83 million in investment spending also popular with investors, the digital insurance brokers were Policy Bazaar of India and Next Insurance of the US. The latter specializes in securing companies and the self-employed, an exciting growth segment for investors.

Also published on Medium.

Published inFintechStartups

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