The Berlin-based fintech mentioned Thursday that it is launching insurance coverage insurance policies for smartphones in partnership with native start-up Simplesurance.

Plans begin from 6 euros — about $7.18 — a month, primarily based on the unique worth of the client’s cellphone. Customers will be capable of purchase protection, handle their plans and provoke claims for issues like water harm and theft.

“In terms of insurance coverage, clients at the moment nonetheless must deal with complicated and outdated processes and paperwork,” mentioned Valentin Stalf, N26’s co-CEO and founder.

“The area has lengthy been ripe for disruption and we are actually providing a one-stop digital answer for our clients insurance coverage wants.”

For now, the function will solely be obtainable in Germany. However N26, which was final privately valued at $3.5 billion, mentioned it plans to roll the product out to extra nations in Europe and increase it to incorporate different forms of insurance coverage equivalent to house, life and journey.

Although N26 already has paid subscription accounts which bundle journey and smartphone insurance coverage, that is the primary time the corporate has supplied such a product to all its customers, and marks a problem to established suppliers equivalent to Allianz and Axa.

It might present the loss-making agency with a brand new solution to generate income from its customers. N26 says it’ll take a small lower from every buyer that will get referred to its insurance coverage companions. Final 12 months, the agency misplaced 110 million euros, barely down from a 165 million euro loss in 2019.

Maximilian Tayenthal, who runs N26 alongside Stalf as its co-CEO, informed CNBC in January that the corporate was pondering of creating its first acquisition, in a bid to increase its providing to incorporate new potential companies equivalent to investments.

N26’s entry into the insurance coverage market comes as buyers are pumping lots of of hundreds of thousands of {dollars} into digital insurance coverage start-ups. U.Ok. on-line insurer Zego lately raised $150 million at a $1.1 billion valuation, whereas German counterpart Wefox is reportedly searching for a $250 million funding at a $2 billion valuation.