A Series C funding round of $650 million at a valuation of $3 billion will help power the European insurtech’s product and geographic expansion, per TechCrunch. Along with its main platform, which connects brokers to customers, wefox offers coverage in household, auto, and other areas through direct-to-consumer insurance products. As a licensed carrier in Liechtenstein, wefox can take advantage of passporting rights across the European Union and looks to build up its presence in five markets. In 2020, wefox doubled its revenues to €119 million ($152.6 million) and expects to double them again in 2021.
Wefox has boosted its growth trajectory by digitally augmenting human agents. Many insurtechs prioritize cost reduction by cutting out middlemen and only selling policies online. Wefox has followed a different strategy, giving human agents access to digital tools. In Europe, human agents remain the dominant sales channel—about 9 in 10 policies are sold via insurance agents. For example, 55% of German policyholders stated they wouldn’t purchase a policy online. Conversely, European policyholders indicate that they want to use digital touchpoints at other steps during their customer journey, such as receiving additional information, per McKinsey. The success of wefox suggests that it’s struck the right balance between selling policies through the favored sales channel in Europe and augmenting agents with digital tools that improve customer service.
As the European insurtech space heats up, wefox’s timely new funding gives the insurtech an opportunity to scale across Europe.