Swiss Re links up with Daimler to reinvent car insurance
With customer needs changing rapidly, two giants in their respective worlds have formed a partnership that looks to take automotive and mobility insurance to the next level.
Swiss Re and Daimler Insurance Services have formed a 50/50 joint venture, known as Movinx. Located in Berlin, the firm has been set up as an insurance intermediary and service provider and has already received competition clearances.
“We believe that partnering with Daimler Insurance Services and establishing Movinx will take us to the next level in innovating mobility insurance,” said Swiss Re digital transformation officer Pravina Ladva. “Our joint long-term ambition is to unlock an ecosystem interplay where insurance supports the introduction of new technologies such as advanced driving assistance systems and autonomous cars as well as new business models in the mobility area.”
According to the firms, insurance needs to evolve alongside the expansion of automated driving and e-mobility. Movinx will act as a managing general agent (MGA) to make insurance part of the vehicle purchase – so that instead of short-term partnerships between car manufacturers and insurers, the focus is on a “joint development journey” that allows for the introduction of new insurance propositions across a range of markets.
“By joining forces with Swiss Re we can lead transformation in an evolving market environment and advance insurance business,” said Ingo Telschow, CEO of Daimler Insurance Services. “We will establish a new business model as well as co-create and co-own an insurance platform. This platform enables easy and efficient insurance purchase and customer-centric services by using real time data. Furthermore, we as Daimler Insurance Services are going deeper into the value chain of insurance business, having more influence on product development and pricing.”
The partners noted that further co-operations are possible in the future with other stakeholders
“Future partners will benefit from our co-owned insurance MGA and be able to offer white-labeled solutions globally,” they said in a release. “Instead of having to deal with many insurers, the manufacturer has one sparring partner, Movinx, across countries. Movinx will then partner with locally licensed insurers to deliver its solutions to the end-customers and cover insurance risk. Insurers and other stakeholders can connect to the IT platform and profit from centralized operations and automated processes supported by a combination of machine- and deep-learning technologies. By connecting to the MGA’s platform, insurers benefit from not having to build tailored and quickly changing insurance programmes.”