€50M Ensures Insurer Elements’s Solvency

Former Axa manager Astrid Stange heads the Berlin-based digital insurer Element. – © imago/Horst Galuschka

Founded in 2017, digital insurance company Element is a white-label insurer that bears the risks for policies sold by digital insurtech underwriters and develops tailor-made insurance policies that customers can integrate into their own products to sell under their brand names. Element holds a costly license from the German Federal Financial Supervisory Authority (BaFin) as a direct insurer, not merely broker, for non-life insurance. As a managing general agent (MGA), Element has underwriting authority to issue policies and products and deliver them to the insured via their customers, many of whom are new to the European market and benefit from Element’s compliant cross-border solutions. 

After raising €88M in 2022, Element has closed their next round for another €50M, as insurtechinsights reports. The company intends to revamp its business model, since growth alone isn’t enough for the startup to become profitable quickly. The changes involve outsourcing claims settlements to external service providers. So Element will be performing fewer tasks in traditional insurance operations itself, but more in the areas of risk assessment, data analytics, and service provider management. The new round is led by the previous investors, including the pension fund of the Berlin Dental Association, to build up the shareholders’ equity capital stock. “The new financing secures our solvency for the long term,” says Dr Astrid Stange, CEO of Element.