Baobab Insurance: 10 Key Things You Must Know

Overview

Baobab Insurance is a dynamic player within the insurtech sector that specializes in offering comprehensive cyber insurance to small and medium-sized enterprises (SMEs) across Europe. Founded in 2021 and headquartered in Berlin, Baobab Insurance leverages cutting-edge technology to mitigate and manage risks associated with cyber threats and emerging technologies like AI. The company has quickly gained recognition for its novel approach, integrating cyber security measures with insurance solutions to offer unparalleled protection to businesses. As you delve deeper into this article, you will discover ten fascinating aspects of Baobab Insurance's operations, innovations, and impact.

1. Origin and Founding

Founded in 2021, Baobab Insurance was established by a group of visionary entrepreneurs, including Vincenz Klemm, who saw the growing need for robust cyber insurance solutions specifically tailored for SMEs. Their mission was to address the vulnerabilities faced by these businesses as they digitize their operations, making them prime targets for cyberattacks.

2. Innovative Insurance Model

Baobab Insurance has developed an AI-native underwriting process that not only assesses risks but also actively prevents cyberattacks. This proactive approach has reportedly helped prevent over €10 million in losses for their clients by addressing threats before they materialize.

3. Cybersecurity Focus

The core of Baobab Insurance's offerings is deeply entrenched in cybersecurity. They offer robust policy frameworks that cover cyber threats such as ransomware, phishing, and data breaches, along with integrated security measures to prevent such incidents.

4. Funding Success

In June 2025, Baobab Insurance raised €12 million in a Series A funding round, bringing their total funding to over €20 million. This financial backing enables them to expand their team, enhance their service portfolio, and explore new European markets.

5. Partnership with Liberty Specialty Markets

In 2025, Baobab partnered with Liberty Specialty Markets to launch an e-crime insurance product targeted at SMEs. This collaboration aims to combat digital fraud through streamlined insurance processes and extensive market coverage.

6. Expansion Goals

Baobab is not only focusing on fortifying its presence in Germany and Austria but also plans to expand across other EU markets within the next 12 months. This strategic move is part of their broader vision to offer comprehensive cyber insurance solutions across Europe.

7. Application of AI

The company applies AI not just for underwriting but also for active monitoring and risk assessment. This tech-driven focus ensures that they provide real-time responses to emerging cyber threats, setting them apart in the insurance sector.

8. Risk Prevention

One of the unique services provided by Baobab Insurance includes a continuous risk assessment and vulnerability management process. They implement patches and defenses within hours, ensuring that client systems are fortified against foreseeable threats.

9. SME-Centric Approach

Baobab has tailored its products to meet the specific needs of SMEs, acknowledging that traditional insurance products often fail to cover unique risks faced by smaller businesses. Their policies are designed to be comprehensive yet easy to manage, offering peace of mind to businesses with limited resources.

10. Social Responsibility

Aside from its commercial offerings, Baobab Insurance is committed to fostering financial stability and resilience among its clients. By emphasizing fair practice and customer protection principles, they aim to contribute positively to the business ecosystem they serve.

Conclusion

Baobab Insurance is redefining the landscape of cyber insurance with its innovative platforms and proactive risk management strategies. As it continues to grow and expand across Europe, the company stands as a beacon of advancement in protecting small to medium-sized enterprises against evolving cyber threats. The upcoming years for Baobab hold promise and potential, with the company poised to make significant inroads in the European insurance market, safeguarding businesses against the digital challenges of tomorrow.