Online bank N26 jumps into insurance, taking on giants like Allianz

4 weeks ago 19

German online slope N26 has launched an security service.

N26

LONDON — German integer slope N26 is getting into insurance.

The Berlin-based fintech said Thursday that it's launching security policies for smartphones successful concern with section start-up Simplesurance.

Plans commencement from 6 euros — astir $7.18 — a month, based connected the archetypal worth of the customer's phone. Users volition beryllium capable to bargain coverage, negociate their plans and initiate claims for things similar h2o harm and theft.

"When it comes to insurance, customers contiguous inactive person to contend with analyzable and outdated processes and paperwork," said Valentin Stalf, N26's co-CEO and founder.

"The abstraction has agelong been ripe for disruption and we are present offering a one-stop integer solution for our customers security needs."

For now, the diagnostic volition lone beryllium disposable successful Germany. But N26, which was last privately valued astatine $3.5 billion, said it plans to rotation the merchandise retired to much countries successful Europe and grow it to see different types of security specified arsenic home, beingness and travel.

Founded successful 2013, N26 is 1 of Europe's biggest alleged "neobanks," a word referring to the question of caller banking players attempting disrupt incumbents with app-only checking accounts. Its competitors see the likes of Chime, Revolut and Monzo.

Though N26 already has paid subscription accounts which bundle question and smartphone insurance, this is the archetypal clip the institution has offered specified a merchandise to each its users, and marks a situation to established providers specified arsenic Allianz and Axa.

It whitethorn supply the loss-making steadfast with a caller mode to make gross from its users. N26 says it volition instrumentality a tiny chopped from each lawsuit that gets referred to its security partners. Last year, the steadfast mislaid 110 cardinal euros, somewhat down from a 165 cardinal euro nonaccomplishment successful 2019.

Maximilian Tayenthal, who runs N26 alongside Stalf arsenic its co-CEO, told CNBC successful January that the institution was thinking of making its archetypal acquisition, successful a bid to grow its offering to see caller imaginable services specified arsenic investments.

N26's introduction into the security marketplace comes arsenic investors are pumping hundreds of millions of dollars into integer security start-ups. U.K. online insurer Zego precocious raised $150 cardinal astatine a $1.1 cardinal valuation, portion German counterpart Wefox is reportedly seeking a $250 cardinal concern astatine a $2 cardinal valuation.