Leading German insurtech Hepster raises $10m in Series A
Hepster, the Rostock-based MGA insurtech has raised $10m in a Series A funding drive supported by Element Ventures, Seventure Partners, GPS Ventures and MBMV along with its long-term investors.
The raised capital will be used to expand Hepster’s presence and enhance the company’s services in automation, which is likely to position it as one of the top insurtechs in the EU.
Currently, Hepster operat es in Germany and Austria. It is already a prominent entity in the European insurtech sector as its B2B model is complimented by a fully functioning B2C webshop.
Hepster provides broad, API-driven cloud based and modular insurance solutions. The company is able to create and action digital insurance products according to its partner requirements in a swift-to-market format. The company is in the process of expanding its current offerings which include sports equipment, bikes, ebikes and electronics insurance.
Hepster has been very well received by the German insurance market because its speed at processing claims and providing cover quickly and in a cost-effective manner is at odds with the majority of the country’s insurance market.
Hepster is part of a new wave of insurtech startups Europe. The company allows businesses to tailor insurance products to match specific requirements, allowing e-commerce operatives, for example, to then embed these insurance products into the e-commerce journey.
Hepster’s innovative products are well-suited to the new mobility sector, including shared e-bike schemes and peer-to-peer rental platforms. These areas are rarely covered by traditional brokers in Germany. However, the company, which has an estimated 700 partners including Greenstorm Mobility and Citkar, also provides traditional forms of cover too.
Hepster co-founder and CEO, Christian Range, said the company’s unique services had helped differentiate it from other market contenders. “Hepster is now a key player within the European insurance market. Our state-of-the-art technology with our API-driven ecosystem, as well as our highly service-oriented approach, sets us apart.”
He continued, “Germany is the toughest market with the most regulations, the most laws. We have a saying in Germany, if you can make it in Germany, you can make it everywhere. Also, it’s a big market in terms of selling insurance products because Germans really like insurance in every regard. So there is huge market potential in Germany I think.”
“As new industries and business models emerge, companies need much more flexible insurance propositions than what is currently being offered by traditional brokers,” explained Michael McFadgen, partner at Ele ment Ventures.
“Hepster is the breakout company in the space, and their focus on embedded insurance will pay dividends in years to come.”
Aviva Investors launch $350m global climate credit fund
Aviva Investors has launched a climate transition global credit fund and has already allocated US$350m in strategic capital.
The funding, which has been provided by Aviva’s UK and Irish multi-asset funds, will be used to invest in companies offering goods and services that support climate change mitigation and the move towards a more sustainable future.
According to reports, the fund is in line with Aviva’s ESG philosophy on green policies and the United Nations sustainable development goals. It will be handled by portfolio managers Justine Vroman and Tom Chinery, as well as the noted climate specialist, Rick Stathers.
Aviva sustainable investment strategy
Companies excluded from the investment fund will be those entrenched in the fossil fuel industry, while enterprises that look at solutions to climate-related problems, such as sustainable transport, renewable energy and environmentally conscious lending, will be targeted.
Aviva Investors confirmed the goal is to capture transition-oriented companies with low decarbonisation and physical impact risk.
The initiative will also be benchmarked against the Bloomberg Barclays Global Aggregate Corporates Index, investing predominately in investment-grade companies and a small allocation of up to 5% in high-yield bonds.
Colin Purdie, Aviva Investors chief investment officer for credit, explained, "We can't pivot to a lower-carbon world if all we do is rule out the poor performers and only invest in companies that provide solutions to climate change. All companies need to adjust for a warmer, lower carbon world, which is why we felt it was important to use a wider transition lens to capture a larger set of businesses beyond those with obvious green credentials."
He said, "As investors, it is our responsibility to look beyond small pockets of green finance to engage and mobilise the liquidity of the wider credit market to assist in climate transition and the achievement of net zero carbon emissions."
Purdie added, "Companies that don't adjust their business models will be less attractive to investors and will present a less compelling investment case over time. Climate laggards may find that their financing becomes more expensive than that available to climate leaders."