Greenlight Re Innovations (GRI), a subsidiary of Greenlight Capital Re Ltd. in the Cayman Islands, has announced an investment in Garentii GmbH, an insurance platform and MGA for the replacement of the German security deposit.
Garantii, a Munich-based insurtech, offers an insurance-based alternative, offering insurance to replace the security deposit within existing workflows when a lease is signed, GRI said.
The financial details of the investment were not disclosed.
Security deposits have long been the standard form of homeowners’ guarantee against damage to property and unpaid rent. However, security deposits are an inefficient use of tenants’ capital and an administrative burden for landlords, GRI explained.
“Warranty replacement insurance has already been successful in the United States and is an excellent product to replicate in other markets,” said Simon Burton, CEO of Greenlight Re. “By developing a technology platform for landlords to distribute and manage policies, Garentii will make renting an apartment easier for both the landlord and the tenant.”
“In our journey to make renting easier, affordable and sustainable for millions of tenants, we are excited to work with Greenlight Re, one of the most innovative and active reinsurance companies. We look forward to learning from their experience and growing our footprint in the marketplace, ”said Michael Hazoume, co-founder and CEO of Garentii.
Launched in 2021, Garentii offers rent deposit insurance for just 3.00 euros per month, instead of thousands of euros when tenants enter into a contract. With more than 35 billion euros ($ 37.6 billion) stuck in rent deposits in Germany alone, Garentii wants to bring this money back into the real economy, according to its website.
Garantii explained that it offers homeowners top industry protection, plus an all-in-one platform to manage all their warehouses in one place. “Landlords save time and money, avoid paperwork and provide a better rental experience,” Garentii said on its website.
Source: Greenlight Re and Warranties
interested in Insurtech?
Receive automatic alerts for this topic.