Because it is an opportunity!
Because it is an opportunity!
For many years, motor vehicles and the associated liability and hull products were and are the classic insurance business in the non-life sector. Baloise currently draws around CHF 1.3 billion in premiums from motor insurance. "But the world of mobility is changing rapidly," says Alexander Bockelmann, CTO of Baloise Group. "This change will stress our classical motor insurance business in the future. We have to prepare ourselves and break new ground."
Sure, the world won't change overnight, but it is doing so - relentlessly. It's a gradual process in which we will see more autonomous cars, more electric vehicles, and for example more shared mobility in the future. "Car manufacturers like Tesla and others," Alexander goes on to explain, "have also long offered complete solution packages to their customers. Insurance and maintenance are part of the car purchase or leasing to expand their share of wallet with each customer. For traditional insurers like Baloise, the pressure grows when this eliminates potential insurance customers in the motor vehicle business."
Among others, Alexander is a member of the Baloise Mobility Board, which strategically manages and controls the new mobility division.
«We are aware; innovation has to do with bets. We act with startups: there will be winners and losers. But the fact is, we see an opportunity here.»
To address such developments in the market, Baloise is focusing on building a service ecosystem in mobility - with the aim of developing a new, self-sustaining business. "We are building a portfolio of mobility solutions and services. We aim to bring them together so that they reinforce and support each other. Also, we are putting strategic partners alongside them."
Alexander points to Baloise's years of expertise in the motor vehicle business, and the partners and networks that have grown from it. "We are aware; innovation has to do with bets. We act with startups: there will be winners and losers. But the fact is, we see an opportunity here. Ultimately, most mobility solutions can’t do without an insurance component. So we use our classic core business and combine it with the innovations of the mobility of the future."
The mobility of the present is facing and changing due to several megatrends. A new acronym dominates the automotive industry: C.A.S.E., which stands for Connectivity (everything is connected to everything online.), Autonomous (self-driving vehicles), Sharing (we use shared services or share our vehicles.) and Electrification (we drive electric vehicles.) "In the future," Alexander explains, "there will slowly but surely be more and more autonomous vehicles that cause less but then more expensive claims. Drivers are no longer the key risk, but the algorithms that control the autonomous vehicles." New insurance risks then lie in the area of product liability or cybercrime, for example, if autonomous cars are hacked. These new risks also offer new opportunities for the classical insurance business.
«New risks offer new opportunities for the classical insurance business.»
The mobility of the future should make a significant contribution to climate and environmental protection. This is linked to three key objectives, the Triple ZERO assumptions: Zero Ownership (Everything is shared.), Zero Accident (Few or no accidents due to autonomous vehicles.), and Zero Emission (Electrification of vehicles).
"Our future mobility is also being influenced by the so-called ESG criteria ", Alexander continues. "They commit companies to strict sustainability and ethical standards. Add to this the climate crisis, the explosion of gas and oil prices - and all this ensures that trends such as electrification and sharing, but also the reduction of sealed surfaces in cities and the resulting deconstruction of parking spaces, are accelerating faster than expected. This makes shared mobility options more attractive, for example. We as an insurer, we are not turning a blind eye, and are using our strengths to find answers to these developments in the form of new mobility services and (risk) products."
«We engage young companies and partners in the mobility ecosystem in a strong network, bringing people, assets, ideas, technologies and organizations together. We aim to connect the topics and call this approach smarter together.»
Currently, the Baloise Ecosystem Mobility portfolio consists of about ten startups that offer for example shared mobility services, fleet management technologies or other mobility related services; they make unused parking spaces accessible, offer flexible mobility budgets for employers, maintain and clean mobility fleets etc. "Our innovation strategy follows the belief in a connected society and economy and similarly in a connected mobility service network. We engage young companies and partners in the mobility ecosystem in a strong network, bringing people, assets, ideas, technologies and organizations together. We aim to connect the topics and call this approach smarter together."