Name
Global FinTech Guide
Country _ Name
Germany
SectionTitle
InsurTech
Body
InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.

Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.

Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.

Introduction

Attitude of the country towards InsurTech-services

InsurTechs are getting more and more popular in Germany. Overall, the political and social climate is positive.

However, there are reservations in the public that German insurance companies are hesitant about innovations. As a result, they are increasingly at risk of missing the boat on new InsurTech trends. It is generally acknowledged in the industry that insurance start-ups offer great opportunities. Nevertheless, very few companies have yet initiated processes and measures to implement new digital products and services on the insurance market. They also expect traditional intermediaries to be among the losers in the InsurTech innovation wave and hope to generate their business through other sales channels in the future.
Nevertheless, the number of InsurTechs has risen in recent years to 155 in Germany. Cooperative InsurTechs form the broad mass of the scene: Almost 85% of InsurTechs rely on cooperations with insurance companies and brokers and would like to work together with established players as digitisation or sales partners. Overall, most InsurTechs are still in the early stages of development; only 3% have reached the maturity phase and have been able to assert themselves as a stabilised, established and profitable member of the German insurance landscape. In addition to Wefox, Friday, Neodigital, Clark, Getsafe and Schutzklick/Simplesurance, which has since been taken over by Allianz, are among the best-known and most successful InsurTechs in Germany. Nevertheless, just two InsurTechs in Germany made a profit for the first time in 2023. Clark and Wefox are the first German InsurTechs to be in the black. The reason is probably that InsurTechs still have to differentiate themselves from the competition with their own product range by offering favourably priced products.

It is therefore fair to say that the climate in Germany is definitely turned towards InsurTechs or is becoming increasingly open to them. Open insurance and API technology are seen as major trends in the coming years.


Legal affairs

Obligations and requirements to provide InsurTech-services

The insurance business is regulated in the German Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG) and the German Industrial Code (Gewerbeordnung – GewO
). Furthermore, data protection and money laundering regulations also have to be complied with.

InsurTechs are subject to insurance supervision if they conduct insurance business. Conducting insurance business as a provider domiciled in Germany requires a license from the competent German supervisory authority, which usually is the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin). Insurance intermediaries or insurance consultancy services require a license not under VAG but rather under GewO. Such licnese is usually issued by their local chamber of industry and commerce (Industrie- und Handelskammer – IHK).

A license for conducting insurance business costs EUR 32.259,00. A license to operate as an insurance intermediary or consultant and to get registered are approx. EUR 300.

The insurance business authorisations may only be granted to public limited companies (Aktiengesellschaften), mutual societies (Versicherungsvereine auf Gegenseitigkeit), public corporate bodies and institutions under public law. The requirements for an authorisation can differ depending on the line of business being pursued. Furthermore, certain insurance classes cannot be bundled together and offered by an undertaking. A sufficient documentation has to be submitted as part of an application for authorisation to conduct insurance business, which includes a business plan. Furthermore, the company requires a sufficient business organisation, the persons who effectively run the undertaking or perform key tasks have to be sufficiently qualified and the company must have sufficient financial resources. Additionally, the provisions on non-insurance business must also be observed in the application process.

Insurance intermediaries and insurance consultants require a clearance certificate, an extract from the central business register, a certificate in tax related matters from the tax authority, an extract of the record of debtors and of the insolvency register, a professional liability insurance and proof of expertise.

Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area

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Economic conditions

Market size for InsurTech-services and biggest companies in this business area

The European online insurance market is estimated at €108.5 billion in 2024, projected to grow to €155 billion by 2029, representing a CAGR of 7.4%. Within this space, Germany’s InsurTech sector is gaining momentum: the market reached USD 728 million (~€670 million) in 2024 and is forecast to hit USD 6.5 billion (~€6 billion) by 2033, growing at over 24% annually. Germany hosts around 150 active InsurTech startups, fostering digital innovation across underwriting, claims, distribution, and data analytics.

Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area
InsurTech offerings increasingly complement traditional insurance, with embedded coverage (e.g., travel, health, e-commerce insurance) delivered directly via banking and trading apps. Nearly 85% of these startups collaborate with established insurers or brokers. A key strategic advantage lies in leveraging big data and AI for risk prediction, usage-based pricing—especially in auto insurance—and enhanced personalization. Ongoing initiatives like Free Insurance Data Initiative (FRIDA) underline growing momentum around open insurance, mirroring open banking, enabling data-sharing ecosystems. As the sector matures, collaboration between startups, incumbents, and regulators becomes essential to sustain innovation and scale.



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