Insurtech startup Luko acquires Coya and gains insurance license

French startup Luko is buying German startup Coya in an effort to develop its European presence and get an insurance coverage license from German regulator. Whereas Luko isn’t disclosing phrases of the deal, the corporate says it’s a 100% share deal, which signifies that Coya traders are actually Luko traders. These traders embrace Valar Ventures, Headline and Roland Berger’s household workplace.

Luko began as a house insurance coverage firm for each householders and renters. It’s an enormous market as it’s a must to show that your private home is insured once you lease or purchase a house in France. Since then, the corporate has expanded with new insurance coverage services and products.

In comparison with conventional insurance coverage corporations, Luko has chosen a direct-to-customer mannequin. Individuals enroll on Luko’s web site or within the firm’s app straight.

After that, Luko tries to be as environment friendly as potential. You possibly can chat with the corporate within the app straight. When the insurance coverage pays you again, it tries to ship you the cash as rapidly as potential. As an example, you may obtain cash immediately on a Lydia account.

In the case of transparency, Luko takes a 30% minimize on month-to-month funds. Every little thing else is pooled collectively to pay compensation. If there’s cash left on the finish of the 12 months, you may select to donate your portion of what’s left of the 70% share.

And the startup has been fairly profitable. It has attracted 220,000 clients — specifically, the shopper base has doubled between November 2020 and November 2021. Luko began accepted shoppers in Spain just a few months in the past as effectively.

Coya, however, provides numerous insurance coverage merchandise for the German market. Insurance coverage merchandise embrace dwelling content material, personal legal responsibility, canine legal responsibility and bike insurance coverage.

Following right this moment’s acquisition, Coya goes to be referred to as Luko Insurance coverage AG. Coya’s 80,000 shoppers are becoming a member of Luko’s buyer base, which signifies that Luko now has 300,000 shoppers in complete.

Extra importantly, Coya has obtained an insurance coverage license in Germany. Luko goes to leverage that license throughout all its markets because of European passporting guidelines. This manner, Luko controls an even bigger chunk of the insurance coverage stack.

Up subsequent, Luko has bold targets because it plans to construct a European chief within the insurtech startup house. The corporate plans to rent 100 new workers this 12 months alone. By 2023, the startup desires to succeed in a million clients.