During May 2022, Penni.io‘s CEO and founder Jeppe Klausen was interviewed by Danish financial daily Børsen in two feature articles, explaining why investors are seeing huge potential in the growing InsurTech industry: Similar to the growth of the FinTech industry 6-8 years ago with the creation of unicorns like Pleo and Tradeshift, digital insurance companies are now starting to make big moves. Penni.io has developed a white label product where insurance companies can embed their insurance offerings directly with their partners. They call it embedded insurance and this is done through partnerships with established insurance companies, enabling Penni.io to advance sales of insurance products from the likes of Danish Tryg, French Axa and Italian Generali digitally, reports Børsen:
“It brings the insurance companies’ products out to the end-customers where they are, in the situation where they are most open to buying an insurance”, Jeppe Klausen says in the first of the two articles with Børsen.
Huge potential in the market
It has been said for many years that the insurance industry has a product that is boring and uninteresting to end-customers, but the industry still has a turnover of three-digit billion at the European level, according to the article. Børsen writes that according to Irish-based Research and Markets, InsurTech will have an annual turnover of EUR142billion in 2030 and growth rates of over 50 percent from 2022 to 2030. The article also states that according to market participants, embedded insurance will reach a share of insurance sales in Europe of 24 percent of the total. Therefore, investors are beginning to see the potential in InsurTech, Jeppe Klausen says to Børsen:
“To the investors we talk to, it has gradually become a trend to have at least one insurtech company in their portfolio – the potential is simply far too great to miss out on”, Jeppe Klausen says in the second article.
In the process of raising double-digit millions
To Børsen, Klausen tells how he already saw the potential of the market a couple of years ago when he founded Penni.io. The company has since raised over EUR4million in the past two investment rounds. In the current round, the main goal is to raise another EUR6-11million through investments from both existing and new investors. The plan with the money is to focus on sales and internationalization as Penni.io will expand its business in France, Spain, Germany and Benelux over the next few years:
“The more we invest now, the larger part of the market we can take”, Jeppe Klausen says to Børsen in the first article.