\u201cEighteen months ago we saw that the world was changing. We then took a lot of decisions around financial discipline that have now paid off. We have been able in Q1 to double our revenue and double our margins,\u201d Teicke said. He\u2019s comparing Q1 2023 versus Q1 2022.<\/p>\n

That\u2019s why Wefox\u2019s first-party insurance business has been deprioritized compared to the distribution business. \u201cWe were mainly focused on growing the top line [of Wefox Insurance] \u2014 and we stopped that,\u201d Teicke said. The company now focuses on markets that it knows really well. On the distribution side, the company is currently developing a network of affinity partners so that they can embed insurance products in their offerings.<\/p>\n

\u201cWhen you buy a car, you get a car insurance on top. When you buy an e-bike, you get an e-bike insurance on top. That\u2019s very similar to our brokerage business. It decreases the customer acquisition costs for us,\u201d Teicke said.<\/p>\n

The ongoing investment in Wefox Insurance is still going to be useful for the company\u2019s next product. Next year, the company plans to release its technology stack so that other insurance companies can create insurance products, manage the performance in real time and handle claims using APIs. Essentially, Wefox wants to become the Amazon Web Services of insurance with this platform play.<\/p>\n

I asked Julian Teicke whether Wefox became an insurance carrier with this end goal in mind. \u201cIt was not the plan at all. When we started, we had no clue. We just took it day by day and step by step. Insurance is such a difficult industry and it\u2019s so slow moving. It\u2019s so slow to really make a difference at scale. When you look at insurance companies, 99% of the business they already have \u2014 1% is what they basically have to fight for,\u201d he said.<\/p>\n

\u201cThere\u2019s no urgency to change. And that\u2019s why it\u2019s not easy to build a new disruptive player in insurance. And I felt that we have to understand how distribution works, how insurance works. Every insurer will need to become digital. There will be a digital infrastructure company for insurance companies,\u201d he added.<\/p>\n

In short, Wefox is streamlining its existing activities to reach profitability across all areas (distribution and insurance) as quickly as possible. At the same time, it is exploring this new platform business with the hope that it will become the most important business over time.<\/p>\n<\/p><\/div>\n

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