In 2017, Baloise launched a so-called "object insurance": customers would insure the exact object that is dear and valuable to them. "Back then we asked ourselves, how can we approach insurance differently and more attractively?" Wolfgang Prasser recalls. Watches, cameras, glasses, jewelry: all would be quickly and easily insured online. "This change of perspective – focusing on the customer - has always kept me busy," says Wolfgang and so he delved further and further into the idea of embedding an insurance into customers' favorite products. Over the years the former Executive Board member gathered knowledge, developed a network and came up with initial concepts. Today, he is part of a Luxembourg-based project team at Baloise driving the embedded insurance theme.
In 2021 the project got started with the development of a prototype: What would a solution of an embedded insurance look like? How do we collaborate best with the partners involved? "The goal was to learn from a real business case," says Daniel Frank (COO, Baloise Luxembourg), “and such we found within our Baloise mobility ecosystem. It's the unit where we connect new mobility solutions, so that they grow and cross-pollinate. One of our portfolio companies is GoMore, a private car brokerage. In all markets, their customers need a simple insurance that works internationally. This way we were able to gain initial experience – especially when entering the markets of Austria and Finland," says Daniel.
«It’s massive what’s going on in the markets when it comes to embedded insurance. We have to stay tuned to find your own niche.»
The Luxembourg project team unites different Baloise expertise: Legal, IT, Actuarial, Product Management and Agile Coaching. "Everyone is highly motivated," Wolfgang and Daniel confirm. "Some of them even work with us in addition to their actual jobs." "Together with various so-called MGAs we keep on learning. They act as an interface between us and our customers. They take on both technological and administrative tasks," says Wolfgang.
"In addition, Simon Torrance is a strategic advisor on our side, a proven expert when it comes to ecosystems and embedded finance/insurance. Thirdly we work together with the consulting firm Synpulse, who specialized in operational models. Jointly we clarify questions such as: What are suitable models of collaboration? What are the advantages and disadvantages? What niches can we occupy to be successful in the future?"
to make the world a safer place. It has important assets that could be leveraged to enable Embedded Insurance 2.0 to deliver on its ultimate purpose of ‘baking more and better protection into the everyday lives of everyone’. But new methods and tools, metrics and mindsets will be needed to realize the opportunity. Baloise is open to these points, and has been at the forefront of carrier innovation in Europe for many years now.
Simon Torrance, Business Model Transformation
When it comes to embedded insurance solutions the market is competitive: reinsurers, car brands, insurtechs – they all are looking for the right approach and the right concept. “We are in a trial phase”, Daniel explains. “We’re testing different thrusts based on different business models. Somewhere, somewhen, all these parties inevitably meet in an ecosystem. We need each other, need to bring our various perspectives and experience to one another. We aim to fill out niches and keep the subject insurance with us - even in times of changing markets."
Wolfgang: “The crux is to become faster - more digital and less complicated. We want to find new distribution channels and win more customers over for our ideas of embedded insurances. An innovative path! The pond that is called Embedded Insurance is huge and we thrive to become one of the big fishes out there.”