Jan 29, 2021

German insurtech INZMO raises €3.1m in a seed funding round

germaninsurtech
inzmo
rentalinsurance
Berlin
Joanna England
3 min
German insurtech INZMO raises €3.1m in a seed funding round
Berlin-based insurtech INZMO to provide end-to-end insurance solutions for homeowners and the rental market...

The German insurtech INZMO has closed a €3.1m fund-raising round led by Change Ventures

The one-stop-shop insurance solution enterprise has now raised a total of €5.2m and is also backed by the Swiss insurance industry heavyweight Helvetia.

Germany is home to Europe's second-biggest fintech market. However, its sector is still undeveloped when compared to the UK's burgeoning industry which is only second globally to the US. 

According to reports, Berlin has emerged as a centre for financial technology and currently hosts more fintech companies and startups than Munich, Frankfurt and Hamburg combined. The city’s top fintech player is N26, the digital bank which recently hit 5m users worldwide.

Insurtech in Germany

Insurtech is another emerging market in Germany. Indeed, INZMO's founders were driven to create the enterprise because traditional insurers failed to address the needs of the growing digital generation of customers. 

As a result, INZMO’s goal is to make insurance coverage as simple and easy as possible through a full-stack solution that provides everything a customer needs, from purchasing cover to claiming back, all through mobile technology.

Currently, traditional insurance companies in Germany provide cumbersome services that can take weeks to process even a single insurance claim. The insurtech’s automated system has transformed the claims process, which can be processed and actioned via a smartphone app in hours.

Although similar apps are widely available in other nations, INZMO’s technology is innovative for the German marketplace. Its platform enables it to partner with a range of B2B and B2C channels. And through these collaborations, it can provide a streamlined one-stop-shop where insurance products can be managed in their entirety.

Insurtech for German rentals market

The additional funding will be used by INZMO to expand its products, services and customer base and to focus on new business. The funding will also develop the company’s household insurance products, including rental deposit insurance aimed at the German rental market.

The product will enable renters to manage their expensive rental deposits more easily. Instead of paying an upfront lump sum, which in Berlin can be as much as €2,400, INZMO customers will pay a monthly fee starting from €3.50. 

To facilitate this service, INZMO is partnering with property owners, agents and marketplaces to make its rental deposit insurance fully available. The product is backed by Société Générale and will be launched in weeks for new and existing rental agreements. Those with existing monetary deposit arrangements will also be able to switch.

So far, INZMO is the first insurtech startup in Germany to launch a fully digital rental deposit guarantee service in a market currently dominated by traditional insurers.

Uncertain times

Risto Klausen, co-founder, INZMO, explains, “In these uncertain times consumers are paying more attention than ever to their financial affairs. With the average deposit for a 1-2 bed flat in Berlin at €2,400 and €3,000 in Munich – expensive deposits are a struggle for tenants. INZMO’s rental deposit insurance is a fraction of the full deposit and for those with restricted cash flow offers an attractive alternative and fairer financing option.”

Meeri Rebane, co-founder, INZMO, says the app has been embraced by users because it puts insurance cover control back into the hands of the customers. “Our app eliminates the headache of managing the often complex insurance process by giving clients full and instant control. They can change policies, submit a claim, and receive up-to-date information,” she explains. 

“Meanwhile, our insurance partners can enjoy the benefit of INZMO’s comprehensive insurance back-office solution without having to invest in expensive development. Our technology also enables us to insure used property, giving us a larger reach in terms of customer base.”

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Jun 18, 2021

TrueMotion insurtech acquired by Cambridge Mobile Telematics

truemotion
cmt
telematics
Insurtech
3 min
US-based TrueMotion and Cambridge Mobile Telematics provide mobile phone telematics technology

Two leading US telematics firms have joined forces as Cambridge Mobile Telematics acquired TrueMotion, another Massachusetts-based insurtech firm. 

One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics, was launched in 2010 and powers 65 enterprise programmes in 28 countries.

Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019. 

TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.

Telematics expansion

The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers, and Progressive. 

The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space. 

Speaking about the acquisition, William Powers, CEO, and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.  

"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.

Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.

McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”

He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."

McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”

Five reasons why telematics is in demand

  1. It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
  2. The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales, and speeds of vehicles. 
  3. It improves driving standards and monitors driver behaviour, reducing detours and ensuring responsible driving. 
  4. It helps fleet health and maintenance by monitoring the health of operational vehicles.
  5. It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.

Image credit: Getty

 

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