BaFin files for insolvency for Element

According to German media outlets, ELEMENT, the German insurance startup offering white-label insurance products, is insolvent following the actions of financial regulator BaFin, which has prohibited the startup from writing any new business.

Lawyer Marcel Leeser from the Höcker law firm confirmed the opening of the preliminary insolvency proceedings on behalf of Element. BaFin had filed an application for the insolvency process after the startup gave notice in December that it had too much debt. It was also reported that Hannover Rück SE, Element’s reinsurance partner, decided not to renew the partnership.

According to the reports, business operations will continue under the financial supervision of the provisional insolvency administrator. Element’s site today only offers the option to contact the company.

Founded in 2017, Element is a cloud-based insurance startup that holds a license from the German Federal Financial Supervisory Authority (BaFin) as a direct insurer for non-life insurance. It provides companies with white-labeled products, which they market under their own brand.

The startup disclosed ~$150 million in total funding. In March 2024, Element raised €50 million, but according to reports it was looking to raise €100 million.