Munich Re discontinues its involvement in the Industrial Internet of Things (IIoT) and winds down former Berlin-based start-up Relayr. This is according to an article published by Handelsblatt, which reports that Munich Re is either selling or phasing out the company as part of its strategic realignment. Relayr’s official business operations will end on July 1, 2025.
Founded in 2013 as a young Berlin-based tech start-up, Relayr quickly gained recognition. With its so-called “Wunderbar” sensor kit, which provided IoT infrastructure in a chocolate-bar format, the team made a name for itself. Initially active in the consumer market, Relayr later shifted its focus to IIoT solutions: retrofit kits, a middleware platform for industrial equipment networking, and IoT consulting became its core business.
From Beacon of Hope to Phase-out Model
A turning point came in 2016, when Relayr received support from Munich Re’s subsidiary Hartford Steam Boiler (HSB). The partnership enabled innovative insurance solutions for connected machines. In October 2018, HSB acquired Relayr for around USD 252 million net, with a total deal value of approximately USD 300 million.
Strategic Shift at Munich Re
In spring 2025, Munich Re announced its intention to focus more clearly on its core business. The winding down of Relayr was part of this strategic repositioning.
Considering the strategic realignment of Munich Re’s innovation strategy, we have withdrawn from initiatives to focus on our core business. — Munich Re
Until that point, Relayr continued to operate its IoT services – however, its once agile start-up structure increasingly faded within a traditional corporate environment, which operated under different economic priorities. While there had been hopes to position insurance and financial services as unique selling points, the strategic shift ultimately led to the end of Munich Re’s first IIoT initiative.
Market and Industry Context
Relayr had long been celebrated as a flagship example of how European start-ups can develop independent high-tech solutions and scale them globally. With AI-driven predictive maintenance tools, edge computing, and digital manufacturing analytics, the company had established itself in the Industry 4.0 segment and received multiple awards – including at the Hannover Messe.
The partnership with Munich Re was seen as a model of hybrid value creation: technology plus insurance – in other words, risk coverage for digital projects. But with HSB’s support withdrawn, Relayr lost a crucial pillar, which ultimately led to its dissolution.
This marks the end of a twelve-year journey for Relayr: from ambitious IoT pioneer to industrial service provider to corporate exit. According to industry observers, Relayr’s closure reflects a broader strategic shift in the insurance sector, where topics like cyber, climate risk, and reinsurance are gaining greater importance – while IIoT remains a niche concern.
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