The Swiss-based Insurtech Helvengo has closed a financing round with backing by Seed X Liechtenstein, among others.

Insurtech is on the rise, with a mission of disrupting the insurance industry. And there is indeed a lot to disrupt: Pretty much like the rest of the legacy financial industry, insurance giants are plagued with outdated systems, manual processes, bureaucracy, and paperwork.

So there are lots of things that can be done better. One of the ambitious disruptors is the Swiss-based insurtech startup Helvengo. The company has now raised over €4 million in its seed round. One of the lead investors was Liechtenstein-based Seed X Liechtenstein. Other investors were TX Ventures, Hypoport, PostFinance, Anamcara Capital, Plug and Play, Conny&Co, and various business angels.

Challenges of startups and SMEs

Helvengo launched just last year in the Swiss market and offers insurance products tailored to the needs of entrepreneurs, startups, and SMEs, all of which have very specific insurance needs.

An issue that those three groups face in the traditional insurance market is that they have risk profiles that are different from the mainstream. From an insurer’s perspective, an entrepreneur faces different risks than an employee. Likewise, startups and SMEs face different risks than larger, more established counterparts.

As a result of having a non-standard risk profile, these customer groups often have to deal with non-transparent and complex insurance offers. Getting insurance is also very time-consuming, as non-standardized processes are mostly manual. That also means that these customers are more costly for insurance companies, meaning they are not a priority.

Helvengo‘s solution

This is the problem Helvengo has set out to solve with digital technologies. Vedran Pranjic, Co-Founder of Helvengo, said:”We offer SMEs the opportunity to analyze and cover their risks in just a few minutes. With this, we are making the commercial insurance market more digital, transparent, and cost-effective.”

The company runs a risk analysis and automatically compiles offers for professional liability, cyber and D&O insurance. This is a market estimated to be worth over €75 billion. Helvengo aims to gain market share fast by addressing the challenges that entrepreneurs, startups, and SMEs face.

Outlook

Pranjic stresses that manual and paper-based processes are not just an issue for customers but also for insurers and brokers.

“90% of the market is served through insurance brokers, but securing business insurance takes a big chunk of a broker’s day, “says Pranjic. “Hours are spent gathering quotes, helping the client make sense of them, processing forms and a  lot of back and forth with insurance carriers to finalize contracts.

The new investment from the €4 million seed round will help the company expand into the German and European markets. The startup also wants to grow through partnering with platforms or ecosystems, as it can digitally integrate wherever the insurance need arises. For example, when applying for a corporate loan, opening a bank account, or purchasing new equipment. That means customers can get coverage without having to answer additional questions.

Insurtech has enormous potential, and the ecosystems in Switzerland and Liechtenstein have already produced several promising startups. Seeing a startup from Switzerland succeeding with backing from Liechtenstein is a good step forward.

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