German digital insurance startup Wefox has raised $650 million from investors, in what it called a record-breaking round for a so-called “insurtech” company that valued the business at $3 billion, Reuters reports.

This is one of the largest investments in the insurtech sector in recent years․ The funding means Berlin-based Wefox has grown in value threefold since tapping investors in 2019.

The investment was led by Berlin venture fund Target Global, whose General Partner Yaron Valler said he looked for Wefox to focus on growing in Europe before launching in the United States and Asia in the year ahead.

Wefox founder and CEO Julian Teicke stated that the Series C round had drawn strong investor demand because Wefox was growing both rapidly and more profitably than rival online insurers that are losing money.

Wefox offers digital tools that enable insurance agents to streamline and automate labor intensive processes. Agents sell 9 out of every 10 policies in Europe, leaving direct-to-consumer competitors like Lemonade fighting for a smaller piece of the market.

Wefox, which is present in Germany, Switzerland and Poland, will use the money raised for European expansion. The company aims to increase revenues to $350 million this year, from $143 million in 2020.

Wefox expects an even split between premium income and commissions from next year, driven by the expansion of its branded products into life and health, in addition to household, liability and motor.

On the cost side, advanced data analytics and its ability to automate more than 80% of customer interactions mean Wefox is able to process claims more quickly and cheaply than established players.

Wefox lays off some exposure from its own product portfolio to partner Munich Re.

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