International investors including Target Global have backed insurtech Wefox in their Series D round with a sum of $400 M, putting the Berlin-based company’s valuation at $4.5 B, reports techfundingnews. The money is to be used for worldwide expansion as well as product development. Wefox was founded in 2015 by Julian Teicke, Fabian Wesemann, and Dario Fazlic and sells third party insurance products indirectly via human agents. This low-risk business model seems to be working in terms of revenue growth. The trick is on the one hand in the digital analytics, which supply Wefox with better loss ratios compared to market averages, and ‘straight-through-processing’, meaning that the agents handle the products digitally. “Our focus [is] on prediction and prevention, rather than the traditional approach of repair and replacement”, says Julian Teicke. “Wefox has a proven model and a sustainable track record to replicate globally, for which the additional funds will be used,” adds Fabian Wesemann.
