Wefox, a German-based company, just raised a cap of $4.5 billion, barely seven years after it was founded. The appraisal validated Gefen’s own business plan, which is listed on the ASX. Disruptive technology has shifted power from the product owner to the distributor in the last 20 years. Consider ride-hailing apps such as Uber or lodging marketplaces such as Airbnb.
Insurance is no exception, with agents or advisors selling nine out of ten policies worldwide. However, unlike taxis or hotels, insurance contracts’ complexities and laws will always require a customer to interact with a human advisor.
Gefen International’s (ASX:GFN) technology is upending the agency paradigm by providing advisers with the tools they need to digitize and boost sales. Moments, the company’s award-winning platform, is a highly compliant platform that the agent network may use to personalize service to end consumers through tools like messaging and sales & marketing. According to research, the potential addressable market for adviser commissions is enormous, with estimates ranging as high as US$700 billion.
Companies that offer a similar product to Gefen, regardless of size, are still few and far between, presenting participants with a long and wide runway ahead.
Wefox, a German-based insurance tech business, is likely the current market leader, having just secured $400 million in a series D financing for a staggering valuation of $4.5 billion. Wefox, which was founded in 2015, is a fantastic illustration of how avoiding the direct-to-consumer model used by other insurtech competitors may yield substantial dividends.
Orni Daniel, CEO of Gefen, feels that Wefox’s success may be reproduced by his company, which has a market cap of $5 million and, like the German-based insurtech startup, uses agent networks to gain consumers at a low cost.
Danie stated in an interview, “Wefox is several years ahead of us, and – like Gefen – their company relies around empowering agents and advisors rather than removing them.” Most insurtech firms strive to eliminate the human aspect and go direct-to-consumer, and many are down by 80% to 90% in this downturn.”
Daniel believes that Wefox is an excellent case study for the potential opportunity that exists for ASX investors because it offers a product that is quite comparable to Gefen.
According to Swiss Re, insurance premiums will reach a new high of more than $7 trillion in nominal terms by the end of the year. The sector’s expansion over the last two years has resulted in Gefen’s revenue rising dramatically each fiscal year.
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