Willkommen Finlex!

BlackFin Tech
Oct 5 · 3 min read

Or why we invested in the leading German wholesale broker for Financial Lines.

If the past 18 months have taught SMEs anything, it might very well be the need for better insurance coverage — particularly against cyber risks. While there is little publicly available data on Cyber insurance, most estimates out there hint to a market that is growing extremely fast, at over 30% YoY. To put this number in perspective, Ecommerce’s CAGR is rather around 15% (granted, on a much larger scale…).

Also, zooming in on a market closer to home, according to AMRAE, a French association related to risk management and insurance for enterprises, in France, insurance premiums have increased from €87m in 2019 to €130m in 2020. That’s a 49%, but that’s still way less than the increase of claims, which went from €73m in 2019 to €217m in 2020 (almost 3x)! Which in turn should lead to a sharp price correction from insurers.

Beyond solely addressing cyber insurance however, Finlex is a platform connecting commercial insurance brokers and their clients with risk carriers active in Financial Lines. Financial Lines are a specific subsegment of commercial insurance products whereby companies and their officers can protect themselves against financial loss. Products include notably Directors & Officers (D&O) insurance, cyberinsurance, legal protection and Professional Indemnity. In Germany alone, where Finlex is headquartered, this market is estimated to amount to €2.5bn in Gross Written Premiums (GWP) and while large companies are usually equipped with such products, demand from SMEs is likely to grow quickly in the coming years.

Leveraging technology to fill the gap between insurers, brokers and SMEs

Generally speaking, commercial insurance is still very much paper-based and there are only a few players in Europe that have built a compelling product and found the right go-to-market at the same time. And here comes Finlex, a Frankfurt-based (yes, you read that right!) startup that has developed a platform enabling commercial insurance brokers to compare quotes from various insurers, secure better terms and conditions thereby distributing financial lines policies more efficiently to their SME clients.

Finlex’s platform automates a number of crucial functionalities including:

Since platform launch in 2016, Finlex has partnered with over 150 brokers and works with many leading risk carriers, among which household names such as Tokio Marine, AIG or Allianz can be found.

Investing in a team of expert entrepreneurs that bootstrapped to their series A

While the platform in and of itself is a strong value proposition, the more compelling asset of Finlex is its founding team. Indeed, Finlex was launched by a team of three experts in Financial Lines that have also managed to put together a stellar team to push this segment into the Digital Age.

The three co-founders, Sebastian Klapper, Tomasz Kosecki and Christian Reddig have spent most of their previous careers in this field, getting to know its inner workings and identifying where it could be improved. And after a while, they simply went their own way, having found a strong business case on which to build Finlex.

That is why we, at BlackFin Tech, are excited to lead Finlex’s €8m series A and to partner with this exceptional team of entrepreneurs! In this round, we are also joined by Segenia, a B2B-focused VC set up by entrepreneurs. By supporting the company in its expansion, both product-wise (notably focusing on cyber insurance) and geographically, we wish to help Finlex become the European category leader in the distribution of financial line insurance products!

Liebes Finlex Team: wir freuen uns sehr auf die künftige, erfolgreiche Zusammenarbeit!

BlackFin Tech

Thoughts and ideas on all things fintech & insurtech