On-line financial institution N26 jumps into insurance coverage, taking up giants like Allianz

German on-line financial institution N26 has launched an insurance coverage service.

N26

LONDON — German digital financial institution N26 is moving into insurance coverage.

The Berlin-based fintech mentioned Thursday that it is launching insurance coverage insurance policies for smartphones in partnership with native start-up Simplesurance.

Plans begin from 6 euros — about $7.18 — a month, based mostly on the unique worth of the client’s telephone. Customers will be capable to purchase protection, handle their plans and provoke claims for issues like water harm and theft.

“With regards to insurance coverage, clients in the present day nonetheless need to deal with advanced and outdated processes and paperwork,” mentioned Valentin Stalf, N26’s co-CEO and founder.

“The house has lengthy been ripe for disruption and we at the moment are providing a one-stop digital answer for our clients insurance coverage wants.”

For now, the function will solely be accessible in Germany. However N26, which was last privately valued at $3.5 billion, mentioned it plans to roll the product out to extra nations in Europe and increase it to incorporate different varieties of insurance coverage reminiscent of dwelling, life and journey.

Based in 2013, N26 is considered one of Europe’s largest so-called “neobanks,” a time period referring to the wave of latest banking gamers trying disrupt incumbents with app-only checking accounts. Its rivals embody the likes of Chime, Revolut and Monzo.

Although N26 already has paid subscription accounts which bundle journey and smartphone insurance coverage, that is the primary time the corporate has supplied such a product to all its customers, and marks a problem to established suppliers reminiscent of Allianz and Axa.

It might present the loss-making agency with a brand new solution to generate income from its customers. N26 says it would take a small lower from every buyer that will get referred to its insurance coverage companions. Final 12 months, the agency misplaced 110 million euros, barely down from a 165 million euro loss in 2019.

Maximilian Tayenthal, who runs N26 alongside Stalf as its co-CEO, informed CNBC in January that the corporate was thinking of making its first acquisition, in a bid to increase its providing to incorporate new potential providers reminiscent of investments.

N26’s entry into the insurance coverage market comes as buyers are pumping a whole lot of hundreds of thousands of {dollars} into digital insurance coverage start-ups. U.Ok. on-line insurer Zego just lately raised $150 million at a $1.1 billion valuation, whereas German counterpart Wefox is reportedly looking for a $250 million funding at a $2 billion valuation.

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