Getsafe Acquires Luko's German Portfolio

The German digital insurtech startup, Getsafe, has expanded its operations by acquiring the German portfolio of Luko, a French insurtech startup. The acquisition comes after Luko neared insolvency and was taken over by British insurer, Admiral Group. This transaction, however, did not include Luko’s German or Spanish operations.

Expansion Into New Markets

Getsafe’s acquisition of Luko’s portfolio marks its presence in four countries, including a recent expansion into France. The German customer base that Getsafe has taken over largely consists of former customers of a German startup, Coya, which Luko acquired in 2022. According to Getsafe’s CEO and founder, Christian Wiens, approximately 90% of Luko’s German customers are former Coya customers.

The Acquisition Strategy

The latest acquisition by Getsafe was approved by the Federal Financial Supervisory Authority (BaFin) in late 2022. This acquisition, however, was not driven by the need for licenses, but by Getsafe’s growth objectives. With the addition of Luko’s German portfolio of 50,000 policies, Getsafe now serves 550,000 customers across Europe, a significant increase from 400,000 prior to its expansion into France earlier this year.

Focus on Profitability

Getsafe’s strategy focuses on selling insurance products directly to its customers, primarily younger demographics, using a mobile-first approach. This approach has resulted in 35% of its customers using its app every month. Wiens shared that 10% of the app usage is for filing claims, while 90% is used to explore further insurance options or to learn more about protection. This multiproduct and direct-to-customer strategy has seen Getsafe double its revenue after a fivefold increase in the previous year and achieve operating profitability in its core markets.

Getsafe vs Wefox

While Getsafe is seeing success with its direct-to-customer strategy, its German rival, Wefox, is focusing on distribution partners. Despite suffering losses of €32 million in 2022, Wefox secured $55 million in a revolving credit facility from JP Morgan and Barclays at a flat valuation of $4.5 billion. On the other hand, Getsafe has raised a total funding of €120 million to date, including a Series B round extension in 2021. The contrasting strategies of these two companies will provide an interesting insight into the future of insurtech.