Entrepreneur Insurance: Luko takes over the German Coya and targets Europe

Insurance: Luko takes over the German Coya and targets Europe

Luko is moulting. The French start-up offering online home insurance has announced theacquisition of its German competitor Coya. Enough to allow the young company to accelerate in Europe and to officially become an insurer, whereas it was previously acting as a broker.

The amount and the precise terms of the operation, carried out in the form of an exchange of shares, were not disclosed by Luko. The company, which has raised just over 70 million euros since its creation in 2018, is notably supported by funds such as EQT Ventures or Accel. It seeks to stand out through the simplicity of insurance subscription, the speed of claims management and housing services.

For its part, Coya has developed, in addition to home insurance, health insurance for pets, insurance for bicycles and civil liability. It has raised some 40 million euros since its creation in 2016. While Coya will become Luko Germany, “100% of Coya’s investors have decided to stay”, slips Raphael Vullierme, the ruler of Luko.

good forward

The operation marks a big leap outside the borders of France for Luko. The company has first focused on France where it also made a breakthrough in the loan insurance market. In the spring of 2021, the start-up, which sees itself as a “European neo-insurance giant”, opened a office in Spain.

Thanks to Coya, it will have solid foundations across the Rhine, whereas replicating receipts is not easy in insurance, where the markets can be very specific. The company will also increase its client portfolio by just under 50%, bringing it to some 300,000 policyholders. It is now setting itself the goal of having 1 million customers “by 2023”.

By way of comparison, the American Lemonade, listed on the stock exchange and which also wants to shake up the online home insurance market, claimed around 1.2 million customers in mid-2021, before the acquisition of the insurance specialist Auto Metromile. However, he remains discreet about his development in France, the Netherlands and Germany, where he will face Luko.

Go much faster

The takeover of Coya will also allow Luko to become an insurer for good, since the Berlin start-up obtained approval from the German supervisor (BaFin) in 2018. Luko intends to be able to play this new string to his bow by France by obtaining authorization from the French regulator.

Getting hold of an insurer allows the start-up to save time while obtaining approval is deemed tedious. The statute is accompanied by numerous regulatory constraints. However, this “will allow us to have even more control over the products and the management of claims, explains Raphaël Vullierme. We remove an intermediary and a level of negotiation.

This change comes at a time when other start-ups in France also want to find a place in the online insurance market – particularly home – and are increasingly attracting investors, such as Leocare and Lovys (both brokers) . This is also the case for Acheel, which has obtained approval for its launch in 2021.

Until then, Luko worked with the insurers Wakam (formerly La Parisienne Assurances) and Great Lakes (belonging to the reinsurer Munich Re) as well as with the reinsurer Swiss Re. continue to work with external insurers for certain products,” says Raphaël Vullierme.

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