Digital Insurance: Keeping Established Brands Successful

Digitization is moving Germany’s insurance industry: Is it necessary to become a digital insurance company in order to continue to influence competition in the future? Or can the industry stick to proven processes and simply improve existing services and modernize core systems? Between these two extremes lies a smart solution: the cooperation with a fully digital insurance product factory with BaFin-license as risk carrier.

Digital Insurance

“A strong signal for the industry” – this is how the insurance expert of the Süddeutsche Zeitung, Herbert Fromme reacted to Germany’s first all-digital insurance policy. Religious stood out less on the offer itself, which combines a classic liability insurance with benefits for football fans. Rather, he emphasized an opportunity arising from digitization for traditional insurance companies: unrivalled prices as a sales argument.

Digital Insurance: Paperless and Automatic

The technology partner behind the all-digital insurance policy is ELEMENT. The Berlin-based Insurtech company offers a platform for managing all aspects of insurance, and all processes are paperless and automatic. This means that end customers apply for insurance digitally, receive the contract by e-mail in their inbox and report damage digitally via a customer portal. Established insurance companies working with a fully digital insurance company can therefore concentrate on product concept, customer contact, distribution and marketing. Additionally, collaborating with a fully BaFin licensed digital insurer (or risk carrier) is als attractive from a tax perspective for insurers.

Three Months from Idea to Product

Another aspect is that ideas can be translated into products faster than ever before. For example, the all-digital insurance policy for football fans was available after only three months of development. An essential part of this was the API interface, from which ELEMENT tailors all applications to the wishes of the cooperation partners.

Outsourcing Risks to Digital Insurance

An additional unique selling point compared to other Insurtech companies in Germany is that ELEMENT holds a BaFin license, this results in advantages for cooperation partners. For example, ELEMENT can stand behind the established brand as an insurer on request, allowing the established insurance company to outsource the risks of the business to ELEMENT.

Conclusion: Established companies in the insurance industry will develop their offers together with digital partners in the future – faster than ever before and with fewer resources compared to internal development or traditional technology providers. This makes new types of digital insurance possible which can react quickly to changing market conditions. Thanks to a powerful interface, proven traditional products can also be converted into digital insurance products.