Term Insurtech Will be Redundant in Six Years

Digital insurer Getsafe has launched a digital accident insurance product as it works towards the creation of a life cover product.

The German underwriter’s CEO said the product was another step toward the transformation of the industry which will see the term Insurtech redundant in six years.

Getsafe added around nine million accidents happen in Germany every year – sometimes with lasting health consequences for those affected.

“Sceptics believe that people are only buying insurance policies online that are exchangeable and quite cheap, i. e. only basic products in the property and casualty sector. With our digital accident insurance, we are proving the opposite. Insurance should be fun – this also applies to products that require explanation, such as accident insurance,” said Getsafe founder and CEO Christian Wiens. (pic) “With just a few clicks, customers can take out insurance on their smartphone, manage their coverage or file a claim.”

The firm said it had set out to offer its customers a comprehensive service for all situations in life. To achieve this, the company said it has adopted a twofold approach.

Getsafe applied for a licence from the German Federal Financial Supervisory Authority (BaFin) for property and casualty insurance in February. This allows Getsafe to implement products and innovations even quicker and with more freedom. Getsafe expects to start with the newly licensed insurer in early 2021.

Secondly the company is still pursuing a platform approach: the self-developed platform enables Getsafe to bundle differentiated products for different life phases and markets under its brand and with a consistent user experience.

“Even with our own licence, Getsafe will continue to develop products in cooperation with other risk carriers in order to provide comprehensive protection for its customers,” it added.

So far, the Covid-19 pandemic has had little impact on the firm. With over 10,000 policies sold, March was the strongest month in the company’s history; April could even exceed this figure.

“The current circumstances require us to do as much from home as possible,” said Mr Wiens. “Taking out insurance via smartphone was convenient before the crisis; now it has almost become a necessity.”

“People of all ages are now learning that they can buy insurance online – just as they order goods or food online. This shift on the insurance business towards the digital space will likely remain,” added Mr Wiens.

He added there was reason to be optimistic about the coming months.

“The need to digitise processes and meet new customer expectations has not only existed since the coronavirus pandemic. Now the advantages of a digital business model are becoming apparent. For the first time, there is a realistic possibility of founding a global company in the insurance sector where sales are 100% digital.”

“In five to ten years, we will no longer be talking about insurtechs and traditional insurers, but only about technology-driven insurance companies. Getsafe wants to set the tone here,” explained Mr Wiens.

In the coming months, Getsafe said it will launch further property insurance policies in the German market. The company intends to enter the life insurance segment with its own product range by the end of the year.

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