As this new decade has begun at full speed, let us pause for a moment and spend some time reflecting. The past six months have been pivotal for us at Getsafe and mark the beginning of a new era for our company – our European expansion. We have launched in the UK in a record time of under four months. This would have not been possible without a solid foundation. We have been working on Getsafe since 2015 now – a long journey! But the last six months in particular have given us plenty of indications that 2020 will be a breakthrough year. Here’s why.
Opt in, opt out, switch it, change it, make it yours – this is how insurance should feel in 2020. This personalization meets a core need for the young, tech-savvy generation, but is something new for the world of insurance. The largest global insurance companies are huge corporations with well over $100bn in annual revenue each (for context: this is more than double Facebook’s revenue in 2018). Despite these resources, incumbent insurance companies continue to face three major issues that are becoming increasingly critical:
We believe there is one simple answer to all of these problems: technology. From day one, Getsafe was launched as a technology company offering insurance – not the other way around. We run our insurance business like Facebook, Spotify or Netflix. We’ve built a strong platform in the background to handle complexity and drive international growth, and have developed an enjoyable customer experience on the smartphone to delight and engage our customers.
Getsafe is currently defining the future of this industry: our app adoption rate is by far the highest seen and we offer one of the only truly mobile products. The most obvious sign is our customers’ ratings, but there is more below the surface: Getsafe has the highest engagement rate on record, with members interacting with the app more than 600.000 times in the last six months. This is possible as more than 95% of our customers also use our app to manage their Getsafe coverage. To put this in perspective this corresponds to an 8x higher mobile adoption rate than other digital insurance providers and a 35x higher mobile adoption rate than some incumbents.
In the digital world, everything happens quickly and trends come and go. If people used Facebook yesterday and Instagram today, they will be using TikTok tomorrow. We believe this isn’t true for insurance. By nature, insurance is a beautiful concept: as we say, insurance should be “a pal rather than a pile of paper” that empowers you in every situation, throughout different stages of life. Getsafe is built with this idea in mind.
We already offer six insurance products in Germany and have just launched our first product in the UK; our total offerings will grow significantly in 2020. As you can see in the picture above, we split insurance into four life-defining categories: Life, Health, Mobility and Home. The categories are universal, but everyone’s life is different. That’s why we are developing our offerings in a way that ensures they are always ready to protect the next step, activity or opportunity in life. For people starting their first job, to those renting their first apartment, buying a bike, moving in together, traveling, getting married, starting a family or saving for the future – Getsafe has a solution.
We are happy to see that so many people like our approach – we just surpassed 100,000 active insurance policies in Germany. What is more unique to this figure is that 75% of these policies have been bought by people who have never engaged with insurance before and who refuse to buy “old insurance.” Young, first-time insurance buyers have high expectations. They want their insurance to work like everything else in life that they can effortlessly manage on their smartphones. But they are also incredibly rewarding for us as a business. Once they trust us, they are loyal and love to use our services to cover new situations in life. As a consequence, more than 30% of our sales come from existing members who buy additional coverage in our app. And our numbers indicate that these relationships will go on for decades, not just years.
We founded Getsafe in Heidelberg, surrounded by Germany’s top tech universities and famous engineering companies like Porsche, SAP and Bosch. There is a reason our headquarters is based here and not in Berlin. Marius and I, as founders, are both German engineers and you know what they say about us... Well, we strongly believe it pays out big to build the perfect engine before starting a race. This sometimes comes at the cost of needing more time on the first few kilometers, but it will ultimately help us win the marathon. Getsafe, in fact, is as much a backend company as it is a sleek smartphone app in the frontend. Our team has spent thousands of hours developing a core platform that is able to run all operations for all kinds of insurance products in real time and across multiple countries, currencies and languages (see picture of the Getsafe infrastructure below). It lets us launch insurance products and markets in record speed, run a business serving millions of customers with a few hundred people, and most importantly, deliver a customer experience that gets the best ratings in the industry today (Getsafe is Germany’s best-rated insurance app with 4.8 stars on the App Store).
There is more. We believe in the power of platforms and diversified supply. In order to reach our vision of creating a consistent, global offering, we partner with large, financially-stable risk partners (insurance or re-insurance carriers) who help us launch products into new markets and quickly provide us with financial capacity as well as local know-how.
What’s our message here? “Technology knows no borders”. This is a key belief we all share at Getsafe. We have launched in the UK, despite (or maybe also because of) Brexit. And there is more to come in 2020. People should be able to live and travel wherever they want, taking opportunities that come along their way. We want to empower people with what we do. So that they can take any risk, living in the knowledge that they’ve got it covered.