The digital insurer Coya merges with the insurer Luko

yourUnder the name of Luko, a merged company of Coya and the French digital insurer Luko will be active on the market in the future. Luko is a specialist in complementary services to household goods insurance around the house (artisan service, video prevention, advice on electricity consumption). Anyone who tries to access the services of your digital property insurer through the website will be automatically redirected to the website. The history of the Berlin company Coya does not end, but with the merger that will take place this Thursday, one of the established names in the insurtech scene will be lost.

Philip Crohn

Business editor, responsible for “People and Business”.

“The merger allows Coya and Luko to share technology, talent and social awareness to dramatically increase the number of people who can enjoy their homes without worry,” says Christian Miele, a partner at Headline and an early investor in Coya.

Other startups have gotten more attention

The Berlin startup, founded five years ago by Andrew Shaw, has been publicly overshadowed by the more aggressive group Wefox and Element, which cooperated with traditional insurers. But Coya is very popular with investors. Among them is the financier Peter Thiel, who lives in the United States. In addition, Coya was able to recruit experienced managers from established insurers. However, at 80,000, the number of people insured in liability, home and pet insurance fell short of expectations.

Insurtechs have to work very hard to remain independent. Wefox has long been a favorite with investors and has raised a large amount of capital. However, market watchers believe the company may soon be heading towards an initial public offering in order to continue spending so much on acquiring new customers.

Neodigital is testing a new distribution channel in cooperation with HUK-Coburg. Digital broker Clark has new opportunities with the entry of Allianz’s own investment platform. And not to forget the already listed Deutsche Familienversicherung, which was on the market a few years before many digital competitors and has a larger customer base.

The merger partners complement each other

Coya and Luko describe their merger as a logical step. The German insurtech has the technology for fast contract creation and claims processing, while the French have already professionalized 200,000 clients and the range of helpful support services. Luko has offices in Paris and Madrid and may expand into Europe’s largest insurance market as a result of the merger. Both partners want to grow from around 300,000 to a million customers in a year.

According to Max Bachem, CEO of Coya, both use technology to achieve a new level of customer satisfaction. “We look forward to all the innovations we will bring to European consumers in the coming years.”

Luko and Coya are confident of succeeding with an ecosystem approach. This has been discussed in every boardroom for about three years. Insurers believe they can increase customer proximity and the number of customer interactions by offering related services in a package, such as auto insurers for mobility, home insurers for all things craftsman, health insurers for health protection.

The logic of the ecosystem convinces both the established and newcomers

Established houses also invest in such ecosystems. The Axa Group has coined the slogan “From Payer to Partner” (from the payer to the client’s partner). In this sense, it could be advantageous to have a partner in Luko who has already gained experience in this area.

As digital insurers with automated processes, both companies work very efficiently. Together they only have 200 employees. However, the merger should make it possible to invest heavily in the Berlin location. Coya will act as a risk taker, which means that it will assume the new risks underwritten on its own balance sheet.

The new Luko Group wants to incorporate more than 50 new employees there who will deal with German customers. This involves existing functions in the area of ​​claims, customer service and sales. Additional developers will also be hired.


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