Carsten Maschmeyers ALSTIN Capital and Deutsche Rück have invested in Neodigital
The Background The technology-driven transformation of the insurance industry is forcing traditional insurers to increasingly enter digital partnerships along the entire value chain. The current global market growth in funding for Insurtech companies as total volume, which has increased from EUR 0.6 billion in 2014 to EUR 3.5 billion in 2018, underlines the current market dynamics and the need for digital business models in the insurance sector. With market-leading digital processes and an individually configurable insurance toolkit, Neodigital offers the market an Insurance-as-a-Service model that is unmatched in terms of modularity and performance. With their digital end-to-end communication, Neodigital is a pioneer in a market that is often solely focused on new business and therefore is an ideal alternative to pure inventory management systems.
The Deal Carsten Maschmeyers ALSTIN Capital and Deutsche Rück have invested in Neodigital. The founding investors coparion and SchneiderGolling Group also increased their shares in Neodigital in the course of the financing round. IEG – Investment Banking Group has acted as exclusive financial advisor to Neodigital. Stefan Heilmann states about the transaction: "The financing syndicate with one of the most experienced and influential entrepreneurs and investors in the insurance industry, Carsten Maschmeyer (ALSTIN Capital), combined with the security, strength, and experience of reinsurer Deutsche Rück, provides Neodigital with an unique 'Silicon Valley like' shareholder group."
The Partners Neodigital Versicherung AG is a digital property and casualty insurer that markets its own Neodigital products such as personal liability, pet owner's liability, homeowner as well as personal accident insurance via independent sales partners. The company focuses on consistent process digitalization of the entire value chain and enables selected sales partners to design their own individualized insurance products via a product configurator. ALSTIN Capital is an independent, long-term oriented venture capital fund based in Munich. ALSTIN Capital's investment focus is on innovative, dynamically growing companies that operate successfully in markets such as Financial Services/ Fintech, Insurance/ Insurtech, Cyber Security, and Industry 4.0. Deutsche Rück is a renowned partner for insurance companies from all over Europe and selected non-European markets. As a dynamic company, Deutsche Rück is selectively on the lookout for cooperation partners who will work with it to accompany the digital transformation in the insurance industry.
The Perspective Carsten Maschmeyer states that “the insurance industry is facing the biggest transformation in its history. Many insurers are currently under enormous pressure. They need to implement digitalization in their own organization and at the same time, customer requests are changing radically. This is what Neodigital supports with its digital insurance factory.” Achim Bosch, a member of Deutsche Rück's Board of Executive Directors, explains further that “both companies will benefit equally from the new partnership in reinsurance between Neodigital and Deutsche Rück. The cooperation leads to a deeper understanding of the opportunities provided by Insurance-as-a-Service offerings from a fully digital insurance company.” Neodigital founder and Chief Marketing and Sales Officer, Stephen Voss adds: “The expanded circle of investors confirms the success of our end-to-end digital business model and enables us – just one and a half years after entering the market – to significantly expand our offering.”