Zurich backs start-up cyber-MGA for SME segment; eyes European expansion

Zurich insurance stepped in to back the start-up cyber-security operator and managing general agent (MGA) Baobab with an insurance product for Baobab’s offer to the German small and mid-sized business market and an eye to the larger continent.

Baobab will offer Zurich insurance capacity of up to €5 million for companies under €100 million in revenue.  Zurich became risk carrier as of August 2022.

“Together with Zurich Baobab has plans to expand across Europe,” the start-up claimed in its press statement.

Baobab bills itself as “the first European company to combine cyber insurance with holistic cybersecurity measures for small and medium-sized enterprises.” Anton Foth and Vincenz Klemm founded Baobab in 2021. Klemm also founded the insurtech Gabi, which was sold to Experian for $320 million, and Anton Foth played an early role at insurtech Coya AG.

The head of financial lines and cyber underwriting at Zurich Group Germany, Jutta Berger, commented: “We at Zurich are convinced that cyber security is becoming more and more important in order to be able to counter increasing threats. Adequate cyber services can help in particular smaller companies to achieve a solid security level. We are confident that the combination of services and insurance provided by Baobab enable SME customers to protect their assets against cyber threats and are looking forward to the cooperation.”

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