Swedish startup Hedvig to become a regulated insurance company in Europe
Stockholm-based home insurance broker Hedvig announced a $9 million Series A extension bringing its total amount raised to over $28 million. The new funding round was closed in June and will be used to finance Hedvig’s transition to become a regulated insurance company in Europe. Investors include Obvious Ventures, Cherry Ventures, Novax, and new investor CommerzVentures.
Founded in 2016 and now a team of 68 people led by CEO and co-founder Lucas Carlsén, Hedvig launched its product – a combination of home and travel insurance underwritten by HDI Global SE – in May 2018.
“Hedvig insures apartments, condominiums and villas. Regardless of whether you own, rent, are resident or sublease, the insurance contains good protection for you and your family, your accommodation and your belongings, whether something happens on a trip, your mobile goes downhill or if you are affected.”
Last year it reached 15,000 customers. Today, the company claims it reaches 37,000 customers; mainly growing organically. The company also runs a referral program called Hedvig Forever – “When someone acquires Hedvig via your link or your code, you both get a SEK 10 discount on your monthly fee. This means that you can get free home insurance for life, if you invite enough friends.”
Like several others, the startup’s messaging combines elements of convenience, fairness, and social goodness.
“Record your claim directly in the Hedvig app and get immediate compensation for the simplest claims. No paperwork, no queues, no call centers.”
“The biggest difference lies in the business model. Quite simply, we have designed away the conflict of interest between us and our customers. By taking a fixed amount from the monthly fee they pay, there is no incentive for us to withhold compensation because we still cannot keep the money. Combined with a radically simple offer and a dedicated service team, Hedvig feels more like a modern service company – rather than insurance you only use every four years.”
“The most significant difference is that we eliminated the temptation of holding on to your money instead of paying it back out. For ourselves, we take only a fixed fee (20%) of your monthly premium, and the rest of the money is earmarked for paying out claims. That’s why you can be compensated immediately, and why we have no reason to question your story. Because we can never earn more from paying out less.”
“We are currently partners with SOS Children’s Villages (SOS Barnbyar) and the Children’s Cancer Foundation (Barncancerfonden) in Sweden. And hopefully many more in the future!”
Bottom Line: it is no longer using this quote.
What a burn in last night's @coveragerinc: "You wouldn't use a 150 year-old lock to protect your home, so why use an old insurer?" – Hevdig #insurance
— Jenn Sanders (@jennrsheehan) August 28, 2019