Mobiliar, Switzerland's oldest private insurance company, is tackling the development of digital solutions head-on: the private property insurer has agreed to buy an insuretech firm.

Bern-based Mobiliar will acquire Swisscaution (SC), a company based in Bussigny (VD) with 75 employees, the insurer said in a statement today.

Swisscaution is the leading firm offering deposits for rented accommodation without a bank security. In Switzerland, a tenant typically has to put three months' rent into a bank account as security for the landlord.

Conclusion in Third Quarter

Mobiliar defined the company acquired as a «true insuretech», with premiums amounting to more than 40 million Swiss francs and 180,000 customers.

The transaction is pending the approval by the regulator. Mobiliar expects to conclude the acquisition in the third quarter of 2016. The two firms won't disclose the price of the transaction.

Second Acquisition This Year

The acquisition of SC is the second foray into the digital world by Mobiliar. In spring, it bought a stake in Scout 24, a Swiss online marketplace.

«We intend to profit from the know-how of the two companies in the development of our own business model, in particular in interconnected eco-systems,» said Markus Hongler, head of Mobiliar, in the statement.