French start-up Luko, which specializes in home insurance, wants to become a European giant

09:46, November 16, 2021

Start-up Luko, which specializes in home insurance, says it has doubled its number of users in less than a year.

“Insurance is ten years behind the bank in terms of digitalisation. The European neo-insurance giants are now being set up.” It is with this ambition that Raphaël Vullierme co-founded Luko in 2018, a fully online insurer specializing in home insurance. And the start-up seems to be sur la bonne route. It announces to JDD the doubling of its number of customers in less than a year, to exceed 200,000. With such results, Luko presents itself as the French leader in neo-insurance on behalf of users, and ranks in the top 3 in Europe. It targets one million policyholders in 2023 in six European countries.

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Cometary? In proposing an offer “20 to 25% cheaper than a traditional insurer, for equivalent protection”, claims Raphaël Vullierme. Fully dematerialized, Luko reduces its costs by having no agency. “Our strength is our efficiency: in a few clicks you can build the insurance that meets your needs, and we are able to respond quickly to requests for reimbursement through our online chat,” said CEO. At the start-up of 150 employees, they offer a multitude of services on the mobile application, from searching for homes to the teleconsultation service to achieve a state of affairs.

A transformed business model

To stand out from its competitors, Luko offers a “Giveback” system. With this process, 30% of the money received goes to the company’s accounts for financing and operation. The remaining 70% is used to reimburse claims and, if there is money left, it is donated to four associations. A process also proposed for the American competitor Lemonade. “We have paid 100,000 euros in 2020. What should be three or four times more this year,” said the entrepreneur.

The company launched a borrower’s insurance policy at the beginning of the school year. “Many bankers want to impose borrower insurance with their loan offer, while the customer has a choice,” said Raphaël Vullierme.

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