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InsurTech Newsletter: sum.cumo and Sapiens

In the edition of InsurTech Newsletter 37, chief editor Dr. Errit Schlossberger contemplates the new collaboration between sum.cumo and Sapiens. The article examines sum.cumo's cooperation with its new associate Sapiens, the advantages that cooperation brings to both, and each partner's area of expertise.

In the last three years, sum.cumo has more than quintupled its turnover and was listed in many reports as one of the most interesting German scale-ups. Projects such as nexible, Dextra and most recently freeyou are among the digital figureheads of the insurance industry. In this respect, it is no surprise that many investors have just been waiting for the Bavarian company to divest its IT investment. With Sapiens, a company from the tech metropolis of Tel Aviv has now, somewhat surprisingly, won the race and will pay up to € 28.4 million in cash and shares for sum.cumo.

Sapiens is only known to a few people in Germany. But especially in the USA, the company is in a league with industry giants such as Guidewire or Duck Creek. It was therefore only a matter of time before Sapiens, as a Nasdaq-listed growth company, would also take a look at the DACH market.
The involvement with sum.cumo seems to be a clever move. On the product side, there is practically no overlap, as sum.cumo is taking a completely different technological path with its inventory system and especially with digital solutions. Sapiens' core systems, designed for large portfolios, can certainly be combined well with sum.cumo's front-end solutions to provide capabilities that are increasingly demanded by insurers today.

The two companies also complement each other well in terms of customer and demand segments. While Sapiens replaces legacy systems and is an expert in data migration, sum.cumo focuses on greenfield and specialty digital solutions.

Consequently, a two-brand strategy has been decided upon. sum.cumo will continue to pursue its highly successful business model, while at the same time the structures will be created to help Sapiens achieve a breakthrough in the DACH region. The first insurance customers in the property insurance business, where Sapiens has a blockbuster product in the form of the IDIT suite, have already been acquired.

Personnel continuity has also been ensured, as the two Co-CEOs, Björn Freter and Ingolf Putzbach, will remain on board for the long term and will in future be responsible for both sum.cumo and the development of Sapiens business.
One must take one's hat off to the Bavarian's intuition. Joining sum.cumo in 2016 has proved to be a stroke of luck. With the profit now realised, the company has been able to build up its own digital platform practically for free, and there should be some scope for further investment in the future.