Getsafe, a digital insurtech startup based in Germany, has successfully acquired the German portfolio of Luko. Luko, a French insurtech startup, faced near insolvency before being acquired by the UK-based insurer Admiral Group. However, this transaction didn’t include Luko’s German or Spanish operations.
About Getsafe
Established in Germany, Getsafe’s presence has grown to four countries, including France. Its latest acquisition has been in part influenced by Luko’s previous purchase of German startup Coya in 2022. Remarkably, around 90% of the German Luko customer base are ex-Coya customers, according to Christian Wiens, Getsafe’s CEO.
While Getsafe had previously considered acquiring Coya, discussions remained informal. Interestingly, Luko’s acquisition of Coya was driven by its interest in securing an insurer license from the Federal Financial Supervisory Authority (BaFin). In contrast, Getsafe had already obtained its BaFin license in 2021.
Growth trajectories
The recent acquisition has significantly accelerated Getsafe’s growth. After absorbing Luko’s German portfolio, comprising 50,000 policies, Getsafe’s European customer base has surged to 550,000, an impressive growth from its 400,000 pre-France expansion earlier this year.
Although the exact terms of the deal remain undisclosed, it seems to benefit both parties. While it aids Luko in managing its debts, it also allows Admiral Group to continue its primary focus on expanding in France via its subsidiary, L’Olivier, known for its car insurance offerings.
Operating profitability
Luko’s agility in launching new products in diverse countries was a compelling factor in its deal with Admiral. According to Wiens, integrating Luko’s customer base was technically seamless. Unlike traditional insurers, who might take years to integrate due to system incongruences, Getsafe’s adaptable platform ensures swift scalability.
Distinctively, Getsafe sells insurance products directly to consumers, primarily targeting younger demographics through a mobile-first strategy. Company statistics reveal that 35% of its customers actively use its app monthly. Within this, 10% of the interactions are claims-related, while 90% pertain to exploring insurance options or seeking education on coverage.
Wiens criticises Luko’s initial sole focus on home insurance. In an online market, he believes in the importance of offering multiple insurance solutions to effectively manage customer acquisition costs.
Getsafe’s strategy seems to be yielding positive results. Even though exact numbers remain confidential, Getsafe reported a doubling of its revenue after previously experiencing a fivefold growth. Additionally, the company’s revenue per customer has consistently doubled annually since its inception.
Wiens remains confident in Getsafe’s direct-to-consumer approach, viewing it as pivotal in reshaping the insurance industry.
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