“Getsafe Expands Its Reach: German-based Insurtech Acquires Luko’s German Portfolio, Surpassing 550,000 Customers”
German-based digital insurtech startup, Getsafe, has made a significant move in the insurance industry by acquiring the German portfolio of Luko, a French insurtech startup. Luko, which recently faced insolvency, was acquired by British insurer Admiral Group, however, the transaction did not include its German operations.
Getsafe’s acquisition of Luko’s German portfolio adds to its growing presence in Europe, as the company had previously expanded into France earlier this year. With this acquisition, Getsafe now operates in four countries and has reached an impressive customer base of 550,000 across Europe. It is worth noting that the majority of Luko’s German customers were former customers of German startup Coya, which Luko had previously acquired.
While Getsafe did not disclose the terms of the deal, it is clear that the acquisition aligns with the company’s growth goals and strengthens its position in the market. The acquisition includes 50,000 policies, including liability, pet, and home contents insurance. This acquisition not only expands Getsafe’s customer base but also provides a new home for Luko’s German customers.
One of the key factors that facilitated this acquisition was Getsafe’s efficient integration process. Unlike traditional insurers, Getsafe has built its proprietary platform in a modular way, allowing for easy scalability and adaptability. This streamlined integration process was evident in the swift integration of Luko’s customer base.
Getsafe stands out from incumbents in the insurance industry due to its direct-to-consumer (DTC) approach and mobile-first strategy. The company sells insurance products directly to customers, primarily targeting a younger demographic. This approach has allowed Getsafe to achieve higher margins and has contributed to its operating profitability in core markets. Furthermore, Getsafe’s multi-product strategy, in contrast to Luko’s previous focus on a single product, has enabled the company to offer a wider range of insurance options to its customers, further driving growth.
In comparison to its German rival, Wefox, Getsafe’s DTC strategy has proven successful. Wefox, which relies on distribution partners, has deprioritized its first-party insurance business. This difference in approach highlights the diverging strategies within the insurtech space. While Wefox secured significant funding, Getsafe raised a more modest amount to date. It remains to be seen which strategy will ultimately prove to be more successful.
As the insurtech industry continues to evolve and thrive, Getsafe’s acquisition of Luko’s German portfolio showcases its ambition to become a leading player in the European market. With its innovative approach, streamlined processes, and focus on customer satisfaction, Getsafe is well-positioned for future growth and success.
