The news: The France-based insurtech acts as a managing general agent partnered with insurers. It will use the mix of debt and equity raise to add more insurance lines, starting with bike coverage, and expand to Spain.
What’s its appeal? Leocare offers easy access to flexible and data-driven coverage, which has become a must-have in insurance due to changing consumer expectations, per Capgemini’s World InsurTech Report 2021.
- Founded in 2017, the insurtech offers policyholders the convenience of purchasing and managing all of their insurance needs in one place, including home, car, motorbike, and smartphone coverage.
- Users can easily change their policy coverage directly on the app if they need to add more home items or a second driver.
- Leocare also uses data to help avoid accidents. For example, it connects user location with road safety data to warn drivers if they’re in a high-risk area.
Looking ahead: Although it’s a small player in France, Leocare can now use its latest capital backing to fuel marketing and distribution of its valuable proposition.
- Leocare’s proposition mirrors that of Lemonade in the US, which offers a similar breadth of coverage and has over 1 million users. Yet Leocare only has about 65,000 users. For context, fellow French insurtech Luko, which focuses solely on home insurance, reached 100,000 users this time last year.
- Leocare's smaller user base suggests that while it's meeting consumer demand, it’s falling short on scalability.
- It can use its large raise to expose its value proposition to a wider customer base, starting with Spain and then potentially, the rest of Europe—similar to Lemonade’s own expansion across the US a few years ago.