Swedish neo insurer Hedvig announces today that it initiates its international expansion across Europe starting with Denmark, in response to hundreds of Danes signing onto Hedvig’s waiting list for a new type of home insurance.
Hedvig grew its GWP by 200% in 2020 and plans to recruit 30 employees by the end of the year
Denmark is a first step in Hedvig’s European expansion roadmap
Average claim management time is 8 minutes, and 8% of new home insurance contracts in Sweden are signed with Hedvig
Hedvig offers home and all-risk insurance with an average time of eight minutes for handling a claim, all through a digital service and world class personal service. In 2020, the company grew its revenue by 200%. To date, Hedvig has insured close to 8 billion € worth of homes and this figure is growing by close to half a billion euros month on month since the beginning of 2021.
8% of all new home insurance policies in Sweden in 2020 were signed with Hedvig, making it the second fastest growing insurance company in the country, behind Folksam, Sweden’s leading incumbent insurer. Hedvig insures 55 000 individuals, with 40% of its growth being organic or by recommendation. The typical Hedvig member is urban, digitally savvy and aged 25-34. Close to 60% of all Hedvig users are under 30 – proving a generational shift when it comes to how people choose their insurance company.
“Today marks a major milestone for Hedvig’s growth”, says Lucas Carlsén, co-founder and CEO of Hedvig. “We are creating a new industry standard for home insurance. We’ve built a product that gives people entitlement rather than hope when it comes to their home insurance. Our statistics show that two thirds of Hedvig customers have had a previous insurance solution with a traditional insurer and made a switch to Hedvig. The demand for our solution is unquestionable, and we are thrilled to kick off Hedvig’s international expansion starting with Denmark.”
The company's mission is to build a culture of trust and make it predictably effortless to bounce back from loss. In less than three years, Hedvig’s rating on Trust Pilot has reached 4.8 out of 5, almost double the rating of competitor Lemonade and Hedvig’s NPS score is 10 times higher than the industry average among incumbents.
Hedvig’s revenue model is fully transparent. The company takes a 25% fixed fee from the insurance premium and the remainder goes into a claims pool that is allocated out to Hedvig users in case of hazards. At the end of each fiscal year, if the claims pool is in surplus, the excess funds goes to charity. Hedvig does not earn more by paying out less, a major factor of consumer mistrust with incumbent insurers. Like any insurer, Hedvig partners with reinsurers such as SCOR in case of major hazards.
Earlier this year, Hedvig transitioned from being an MGA (a managing general agent, or insurance broker) into a full-stack carrier, with a license that is valid across the European Union, a key component for Hedvig’s expansion.