German insurtech Element has secured €21.4mn in Series B funding, taking the total amount raised to date to €88mn.
The latest round was led by pension fund VZB with additional investment from Alma Mundi, Witan Group and Ilavska Vuillermoz Capital. The Berlin-based digital insurance company says it will use the funding “to expand its market position and integrate new product categories into its portfolio”.
Element allows partners to embed insurance products into any stage of their product journey, taking care of the regulatory and technical aspects while enabling P&C solutions throughout the insurance value chain, including claims settlement. Its products include cloud failure insurance, real estate purchase guarantee and all-risk cover with loss ratios that the firm says are “well below the industry standard”.
Within five years of being founded, Element has already secured 200,000 customers and grown its team to 140 employees, with sales last year growing to €10.4mn.
Plan to rid ‘billions’ in costs from European insurance market
Element CEO Christian Macht says: “It is this profitability on every product and partner level that will prove critical in the years ahead. Year after year, we are seeing a 66% increase in revenue and are well on our way to achieving our goal of 100% growth by 2022.
“Most importantly, we will continue to pursue our long-term goal of eliminating billions of dollars in unnecessary costs in the European insurance market.”
And Ralf Wohltmann, Director of VZB, adds: “We invested at an early stage of the company's development and see Element’s growth and innovation as a confirmation of their commitment to set standards in the industry, both on the product side and in their ESG efforts.”