Future of B2C Industries
The standard expectation for the future of any B2C industry is a mobile app, no human involvement, and the simplest possible tariffs and rules. Modern banks are developing according to the same principle as food delivery – download, click, and get the service.
Wefox’s Distinct Approach
The German Wefox believes the future is an extended present; the insurance business will not change. The startup simply automates what Germany has now, and this strategy is effective. At the center of its application is a live broker who talks to customers and explains what insurance to buy (Ruthemeier et al., 2022). In Wefox, the broker gets a user-friendly CRM system to interact with old customers and a means of attracting new ones.
Convenience of Mobile-First Insurance Consulting
The end consumer saves on phone calls and travel – the consultant broker is on a smartphone, and it is more convenient to communicate with him. Wefox, an insurtech startup from Germany, started in 2015 to provide people with security and risk prevention by rethinking insurance at scale through technology (Zeier, 2018). Wefox focuses on selling insurance through intermediaries rather than direct channels. Through analytics, it achieves a better loss ratio than the market. It has already built a network of thousands of digitally supported consultants across Europe.
Growth Milestones and Investment Achievements
Wefox increases customer satisfaction, reduces customer acquisition costs, increases cross-selling, and reduces customer churn. In early June 2021, Berlin-based insurtech startup Wefox announced it had raised $650 million in investment (Zeier, 2018). The Target Global fund led the investment round, with Ukrainian fund GR Capital, Sound Ventures, Partners Group, Jupiter, Decisive Wealth, and others also participating. It is a record amount for a startup that has tripled Wefox’s valuation (to $3 billion) since it raised funds in 2019 (Ruthemeier et al., 2022). The Wefox startup, which has a presence in Germany, Switzerland, and Poland, will use the money raised to expand in Europe.
Expansion Plans and Market Opportunities
Moreover, it plans to enter the U.S. and Asian markets in the near future. The startup intends to expand its range of branded products into life and health, household, liability, and automobiles. Agents sell nine out of every ten European policies, leaving direct-to-consumer competitors like Lemonade competing for a smaller market share (Zeier, 2018). Wefox is thus one of the most successful startups, and it has already become a full-fledged business covering more and more markets.
References
Ruthemeier, A., Röder, S., Schröter, K., & Plugmann, P. (2022). The Global Impact of Social Innovation: Disrupting Old Models and Patterns. Springer.
Zeier, A. (2018). Digitale Versicherungsbroker–Alter Wein in neuen Schläuchen? Wie sie Mehrwert schaffen. Zeitschrift für die gesamte Versicherungswissenschaft, 107, 273-291. Web.