Berlin-based ELEMENT, an insurtech startup that offers custom-made, white-label product solutions for digital insurance, announced on Friday that it has raised €21.4M in a Series B round of funding. The company’s total funding now amounts to €88M.
The investment was led by the Versorgungswerk Zahnärztekammer Berlin (VZB). Alma Mundi, Witan Group and Ilavska Vuillermoz Capital also participated in this round.
Capital utilisation
ELEMENT says that it will use the funds to expand its market position and integrate new product categories into its portfolio.
CEO of ELEMENT, Dr Christian Macht, says, “Most importantly, we will continue to pursue our long-term goal of eliminating billions of dollars in unnecessary costs in the European insurance market.”
“Shaping the future of insurance”
Founded in 2017, ELEMENT is a cloud-based insurtech startup that holds a licence from the German Federal Financial Supervisory Authority (BaFin) as a direct insurer for non-life insurance.
With its vision for digital insurance solutions, ELEMENT claims to have helped establish a new industry standard for product innovation and partnerships in the insurance marketplace. The startup says that it is the only cloud-based digital insurance provider in the European market with the ability to provide P&C solutions for the whole B2B2X insurance value chain, including claims processing. It does this by combining the best of both worlds – technology and insurance.
The startup claims that it can act as a risk carrier in all EU countries, and is a completely independent insurance company – without restrictions of any group affiliation. With its proprietary modular tech platform, ELEMENT specialises in providing custom-made white-label solutions to partners across all industries.
Growth and development
The recent financing highlights the Berlin-based insurtech’s ongoing expansion. Sales increased by more than 50 per cent over the prior year to reach €10.4M last year.
Additionally, the company surpassed the 200,000 client threshold and more than 50 partners distribute ELEMENT products, including three DAX 40 companies. With its partners and 140 workers, the firm is working to strengthen its position as a top supplier of quick, effective, and dependable end-to-end insurance solutions across Europe.
ELEMENT’s offerings include Cloud Failure Insurance, Real Estate Purchase Guarantee, and All-Risk Cover. The company says that loss ratios considerably lower than the industry average confirm the cost advantage.
“It is this profitability on every product and partner level that will prove critical in the years ahead. Year after year, we are seeing a 66 per cent increase in revenue and are well on our way to achieving our goal of 100 per cent growth by 2022,” says Dr Christian Macht, CEO of ELEMENT.
