Trends

Stronger together: Cooperation gives wings to start-ups and corporations

The "World InsurTech Report 2020" by the US consulting firm Capgemini sees growing opportunities for cooperative business models between corporations and start-ups. //next reveals why - and gives exciting details of the study. 

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Since the corona pandemic at the latest, insurance customers have been making intensive use of the digital channels provided by ERGO and other companies. In order to remain competitive, established insurers must therefore work hard to improve in key areas - such as customer focus, intelligent processes, product flexibility and open ecosystems. The innovative strength and niche expertise of external technology partners are a great help in this regard. 

The "World InsurTech Report 2020" of the US consulting company Capgemini therefore sees growing opportunities for InsurTechs with cooperative business models. BigTechs could also be considered as possible cooperation partners for insurance companies - mainly because of their "exemplary user experience". One should "look at what Amazon offers: namely a perfect sales process," said industry expert Marc Surminski in a recent interview with //next: "Insurers must also try to make it as easy as possible for customers. An example: A friend recently asked me about travel health insurance. I recommended him to a large provider that also has good ratings. He was then extremely enthusiastic about the closing process. He said, 'It was almost as easy as ordering from Amazon.' You have to go there!" 

John Berry, CEO at Efma, also advises insurers to become more customer-oriented "in everything they do". Working in partnership is "the most efficient way to technology" in order to meet the increasing expectations of customers and remain competitive. Fortunately, he added, "the maturity of InsurTechs and their willingness to work together to provide insurers with new technology solutions" is increasing. This is also shown by the "World InsurTech Report 2020":

  • 67 percent of insurers worldwide and 50 percent in Germany want to work with InsurTechs.
  • 83 percent of the InsurTechs worldwide and 77 percent of the Germans are interested in partnerships with insurers. 85 percent of InsurTechs worldwide and 92 percent in Germany want to cooperate with technology providers.
  • More than 60 percent of both insurers and InsurTechs worldwide are interested in cooperating with BigTechs. In Germany, this applies to 54 percent of InsurTechs, but not yet to established insurers.

All results of the report at a glance can be seen >>> here summarized in a graphic.

By the way: In order to question itself and sell insurance to "pure online customers" who want buy and manage their policies exclusively on their cell phones, ERGO founded its own InsurTech as early as 2016. Today nexible already has more than 60,000 customers and 43 employees. The degree of digitalization was 98 percent from the very beginning.

Text: Ingo Schenk