Neodigital Goes Motor: HUK-COBURG Invests in Germany’s Online Insurer
HUK-COBURG Invests in Germany's Consistently Digital Insurer
Neodigital is a digital property and casualty insurer that markets its own Neodigital products, which are private liability, pet owner's liability, household, mobile phone, residential building, accident, and bicycle through unaffiliated sales partners. The company focuses on the consistent process digitalization of the entire value chain and enables selected sales partners to design their own individualized insurance products via a product configurator. Supplemented by the white label option, the product can also be marketed by sales partners under their own brand through existing sales channels.
Neodigital Versicherung AG has expanded its circle of investors to include a renowned insurance company and, subject to the approval of the German Federal Financial Supervisory Authority (BaFin), plans to create the joint venture "Neodigital Autoversicherung AG" together with HUK-COBURG, the No.1 German motor insurer. This joint venture aims to extend Neodigital's digital leadership to motor vehicle tariffs.
Both insurers will contribute their respective core competencies to this joint venture. Neodigital stands for efficiency-driven, fully digital process handling and a high degree of automation - coupled with the ability to react flexibly to market changes through innovative technologies. These competencies, combined with HUK-COBURG's many years of expertise and market leadership in the motor vehicle sector, lead to a win-win situation for customers that were previously unknown on the German market.
Neodigital Versicherung AG was founded in December 2016 and is headquartered in Neunkirchen. The company is licensed by the German Federal Financial Supervisory Authority (BaFin) to conduct business as a property and casualty insurer in Germany. In addition to the founders, Dirk Wittling and Stephen Voss, the company was able to attract financially strong and industry-competent investors, including SchneiderGolling ND Invest GmbH and coparion GmbH & Co. KG, ALSTIN Capital, and Deutsche Rückversicherung AG as well as Elevat3 Capital.
HUK-COBURG is the major insurer for private households with traditionally low-priced offers ranging from motor vehicle insurance, liability, accident, property, and legal protection insurance to private health, life, and private pension insurance. With a premium income of over EUR 8 billion in 2020, it is one of the ten largest German insurance groups. HUK-COBURG's traditional focus is motor insurance: With around 13 million insured vehicles, it is the largest German motor insurer. In household and personal liability insurance, it is one of the largest insurance providers on the market. HUK-COBURG, headquartered in Coburg, employed a total of over 10,000 people at the end of 2020.
"The motor insurance market, more than almost any other sector, is driven by innovation, short development times, and digitalization. With a modern digital motor vehicle architecture, it will also be possible to map complex fleet models in an agile and efficient way in the future. We at Neodigital are convinced that thanks to the consistent digital mapping of all our processes and the future cooperation with HUK-COBURG, we are well equipped to enter the motor insurance market," says Stephen Voss, Director of Sales and Marketing at Neodigital Versicherung AG.
In addition, the motor vehicle insurance business is considered the most competitive sector in the German insurance market. "Our digital business model has proven successful in other types of insurance. In this respect, the motor business is the logical next step for us," adds Voss.
"With the addition of HUK-COBURG as an additional investor, besides Elevat3 Capital, Alstin Capital, Deutsche Rück and BA4V, Neodigital has gained another powerful partner to expand its product portfolio," commented Stefan C. Heilmann, CEO of IEG - Investment Banking Group.
Neodigital's management and shareholders were advised by IEG - Investment Banking Group.