Growth at Insuretech: Wefox wants to be profitable in 2021

Growth at Insuretech
Wefox wants to be profitable in 2021

Digitization in the Corona crisis plays into the hands of insurance startups – Wefox also benefits from this. The Berlin company is now valued at more than a billion dollars and wants to be in the black next year.

The insurance startup Wefox wants to be in the black in the coming year. The aim is to achieve an operating profit, said company founder Julian Teicke. For this, a turnover of 300 million euros is targeted. This year, the proceeds would be in the three-digit million range, said Teicke, without giving a specific number.

The accelerating digitization in the Corona crisis is playing into the hands of Wefox. Future growth is also fed by further expansion: In Switzerland, Wefox now also offers insurance itself, which promises the company higher returns. The company, which is currently active in six countries, plans to soon operate in Poland and expand its business in Italy.

Wefox has always relied on two pillars: On the one hand, its own insurer One, which currently has 350,000 customers and 500,000 policies, and on the other hand, the Wefox platform, which currently 3500 insurance brokers can use to digitally manage their customers' policies. For this, Wefox collects commissions from the insurers.

The Berlin-based company, founded in 2014, is valued at more than one billion dollars according to financial circles and has raised $ 270 million from investors such as the Canadian pension fund OMERS, the British Merian Chrysalis and the Samsung Catalyst Fund from Samsung Electronics.

Teicke does not want to be pushed onto the floor by the successful IPO of the US insurer Lemonade. It is about further showing that sales can grow by 100 percent annually, then you have a lot of options – including going public. "We are not a monster that destroys money," said Teicke, referring to Lemonade, which is still in the red. That takes the pressure from Wefox compared to the competition.

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