Cover Genius has acquired Friendsurance to combine the pair’s infrastructure for embedded cover and banking and insurance platforms to serve financial institutions in the German, Austrian and Swiss markets.

Under the deal, Sydney-founded Cover Genius and Berlin-based Friendsurance will establish a large digital insurance distribution network.

“European banking represents one of the highest-conviction growth opportunities in embedded protection,” Cover Genius CEO and co-founder Angus McDonald said.

“Banks across the [Germany, Austria and Switzerland] region are under pressure to move beyond legacy cross-selling and deliver protection that integrates into their customers’ daily financial lives.”

Mr McDonald says Friendsurance has spent 10 years building the technology, banking networks and institutional compliance required to make that possible.

“Together, we can offer European banking partners a clear advantage: a protection layer that is already compliant, highly optimised and proven to drive platform yield.”

The financial terms of the deal are undisclosed.

Friendsurance co-founder and CEO Tim Kunde said: “We built Friendsurance to solve a clear friction point. Banks want to offer modern, customer-centric protection, but legacy infrastructure and compliance make it incredibly difficult.

“We are incredibly excited to deliver a unified, world-class experience to European financial institutions.”

Embedded insurance group Cover Genius is active in more than 60 countries. It works with customers including Booking.com, Turkish Airlines, eBay and Uber.