Greenlight Re Innovations (GRI), a Cayman Islands-based subsidiary of Greenlight Capital Re Ltd., has announced an investment in Garentii GmbH, a security deposit replacement insurance MGA and platform in Germany.
Garentii, a Munich-headquartered insurtech, provides an insurance-based alternative, offering security deposit replacement insurance within existing workflows when a lease is signed, said GRI.
Financial details of the investment were not disclosed.
Security deposits have long been the standard form of landlords’ security against property damage and unpaid rent. However, security deposits represent an inefficient use of renters’ capital and an administrative burden for landlords, GRI explained.
“Security deposit replacement insurance has already seen success in the U.S. and is a great product for replication in other markets,” commented Simon Burton, chief executive officer at Greenlight Re. “By developing a tech platform for landlords to distribute and administer policies, Garentii will make renting an apartment smoother for both landlord and tenant.”
“On our journey to make renting easier, accessible, and more sustainable to millions of renters, we are thrilled to partner with Greenlight Re, which is one of the most innovative and active reinsurance companies out there. We look forward to learning from their experience and growing our market footprint,” said Michael Hazoume, co-founder and chief executive officer at Garentii.
Launched in 2021, Garentii provides rent deposit insurance for as little as €3.00 per month, instead of thousands of euros when renters enter a contract. With more than 35 billion euros ($37.6 billion) locked in rent deposits in Germany alone, Garentii wants to bring this money back into the real economy, according to its website.
Garentii explained it also provides landlords with industry-leading protection, plus an all-in-one platform to manage all deposits in one place. “Landlords save time and money, avoid paperwork and offer a better renting experience,” said Garentii on its website.
Source: Greenlight Re and Garentii
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