German insurtech startup Getsafe has acquired the German portfolio of Luko, a French insurtech firm that recently came close to insolvency before being bought by British insurer Admiral Group. The deal includes the acquisition of 50,000 policies, covering liability, pet, and home contents insurance. With this acquisition, Getsafe’s customer base has grown to 550,000 across Europe. Terms of the deal were not disclosed.
Luko’s expansion into Germany began in 2022 when it acquired German startup Coya. However, most of Luko’s German customers are former Coya customers, making the acquisition strategic for Getsafe. Unlike Luko, Getsafe did not need to acquire a license from the Federal Financial Supervisory Authority (BaFin) since it had already obtained its insurer license from BaFin in 2021.
The acquisition process was relatively quick for Getsafe, taking only a few weeks for post-merger integration. This rapid integration is attributed to Getsafe’s modular and scalable proprietary platform, which allows the company to adapt and grow easily.
Unlike traditional insurers, Getsafe sells its insurance products directly to customers (DTC), primarily targeting a younger demographic with a mobile-first strategy. This approach, combined with its ability to offer multiple insurance products to the same customer, has contributed to Getsafe’s success.
Getsafe has been focused on achieving profitability in its core markets and has seen its revenue per customer double each year since its inception. The company’s direct-to-consumer strategy has resulted in higher margins, and it continues to view DTC as the key to disrupting the insurance industry.
The acquisition of Luko’s German portfolio represents a strategic move for Getsafe as it expands its customer base and presence in Europe.