German fintech N26 has recently announced that it will be delving into the world of insurance with a new mobile app and website service. Since its founding in 2013, the company has experienced enormous growth, now reaching 7 million users across Europe and the U.S., with most of its clientele being in and around Germany. It also recently launched a business account option for self-employed people and freelancers in Ireland, in partnership with SumUp.
Now, N26 has launched a new smartphone insurance plan as its first offered coverage to the German market. The service will offer insurance on even the most expensive smartphones for a set monthly fee, but the company does not plan to stop there.
If successful, N26 has an expansion plan that could eventually allow the company to offer insurance for the most basic everyday items. Say someone was trying to purchase a bike, or a new television: they could add monthly payments to their insurance plans to cover these new items as well and, oftentimes, there would be savings in comparison to buying expensive insurance for these items right off the bat.
N26 is also looking to offer essential services like life insurance, home insurance, liability insurance, and pet insurance in the long term. With different tiers of memberships, currently ranging from free to €16.90 per month, the plans are highly accessible for many kinds of users.
Though the services are only going to be offered in Germany initially, the company hopes to expand throughout Europe and eventually the U.S. and beyond. Offering insurance is a smart move that will not only will help to differentiate the fintech in a competitive market, but also will allow it to capitalize on the growing demand for insurtech products.