German Neo Bank N26 Gets Ready To Take On Big Insurance

German digital bank N26 is getting into the insurance business and has its sights set on tackling some of the industry’s biggest players, CNBC reported on Tuesday (April 15).

The FinTech is partnering with Berlin’s Simplesurance, a startup that facilitates mobile cross-selling in the insurance space. The first insurance product will be smartphone coverage.

“When it comes to insurance, customers today still have to contend with complex and outdated processes and paperwork,” Valentin Stalf, N26′s co-CEO and co-founder, told CNBC.

“The space has long been ripe for disruption, and we are now offering a one-stop digital solution for our customers’ insurance needs,” Stalf added.

N26 will launch the service in Germany first, with plans to expand the program across Europe. The monthly phone insurance plans start at €6 and are based on a user’s smartphone value. The company is also planning to add additional insurance products for home, life, and travel.

Founded in 2013 and headquartered in Berlin, N26 is among Europe’s biggest challenger banks and competes with Chime, Revolut, and Monzo, CNBC reported. The startup last had a valuation of $3.5 billion and posted losses totaling €110 million, down from 2019 losses of €165 million.

N26 already has subscription bundles for smartphone and travel insurance. With Simplesurance, the digital bank will be able to offer insurance to all of its users and disrupt big insurance companies like Allianz.

The insurance market is changing as investors line up, cash in hand, to back digital insurance startups. The U.K. digital insurance platform Zego, for example, recently raised $150 million at a $1.1 billion valuation. Germany’s Wefox is thought to be looking for a $250 million investment at a $2 billion valuation, per CNBC.

N26 last month teamed up with the cashback platform Dosh to advance its Perks program. N26 users can tap Dosh and earn rewards on every purchase made in the country.