The Helvetia Venture Fund invests in the Spanish start-up company Freshurance. The InsurTech has launched a peer-to-peer mobile phone insurance for the Spanish market under the name Cobertoo. Cobertoo's target groups are millennials and Generation Z with a smartphone. It is an interesting peer-to-peer (P2P) insurance model from a behavioral economics point of view, as the clients have incentives to avoid unnecessary damages to their devices. The entire insurance process, including claims settlement, shall be handled digitally. The business model can be considered highly innovative within the insurance sector due to its transparency, its user experience as well as the inclusion of the Community aspect due to the peer-to-peer model. It combines sustainability and social responsibility alike. Cobertoo has been selected by FinTech Global for INSURTECH100
, an annual listing of the most innovative InsurTech companies.
Under the peer-to-peer approach, policyholders pay a monthly membership fee of EUR 1 and monthly premiums for the insured mobile phone, dependent on the model. Freshurance receives the membership fee and 25 percent of the premium. The remaining 75 percent of the premiums are pooled. Claims are paid from this pot. 75 percent of everything that remains in the pot is returned to the policyholder in the form of a cash back. The other 25 percent is donated to NGOs for charitable purposes.
Freshurance has participated in the Start-up Accelerator Program of the Startupbootcamp in Amsterdam in 2018 and has been awarded as the most innovative InsurTech. With the additional capital, Freshurance will participate in Sandbox Spain, as well as expand its marketing and develop the product technologically. Insights into peer-to-peer business models
With its investment in Freshurance, Helvetia is gaining insights into the highly innovative Spanish InsurTech market and further knowledge of peer-to-peer business models. "Helvetia has already gained a lot of experience in the insurance of items such as mobile phones. With Freshurance's peer-to-peer insurance, we are gaining further insights into an exciting market for Helvetia", explains Markus Gemperle, CEO Europe of Helvetia. Ricardo Sanchez, founder and CEO of Freshurance, adds: "We have already worked successfully with Helvetia on previous projects. I am therefore very pleased that together we will be able to pursue our vision of a simple, transparent and collaborative insurance company that relies on state-of-the-art technological solutions."