German digital bank N26 has made its entry into the insurance space with the launch of on-demand insurance products within the N26 app.
The bank has partnered with insurtech Simplesurance to roll out insurance policies for smartphones in partnership.
N26 customers will have the option to buy coverage, manage plans and initiate claims for a range of insurance plans offered by various insurers.
They will be able to select plans straight from N26 app, with the option to purchase annual cover or monthly plans with a flexible cancellation policy.
The coverage starts at €6 per month, depending on the original value of their smartphone.
Commenting on the development, N26 co-CEO Valentin Stalf said: “When it comes to insurance, customers today still have to contend with complex and outdated processes and paperwork. The space has long been ripe for disruption and we are now offering a one-stop digital solution for our customers insurance needs.”
N26 said that the launch of the on-demand smartphone insurance is the first of a series of planned product launches by the company in Europe over the coming months.
The upcoming products include home, life, travel, private liability, bike, electronics and pet insurance.
According to N26, Europeans spend over €2,000 a person a year on insurance cover on average in a market with an annual volume of €1.31trn.
The bank said it aims to ‘radically simplify this important part of customers’ financial lives’ with its entry to insurance space.
Last month, German insurer Allianz reached an agreement to acquire the Polish business of Aviva in a cash deal worth $2.9bn (€2.5bn).