Swiss Re and Daimler announced a joint automotive and mobility insurance venture on Monday, looking forward to tapping into a wealth of new data generated by highly automated vehicles to help insurers to evaluate risk.
The reinsurer and the automaker set up Movinx, a Berlin-based intermediary they will co-own equally, the companies said.
As connected and self-driving cars generate live data about traffic flows, vehicle reflexes and driver behaviour, the companies expect more opportunities will arise to customise automotive and mobility insurance products.
“Even before cars come off the manufacturing line, we know the specific features and how that vehicle would react in an emergency situation and we can provide a score to insurance partners to better underwrite the risk,” said Pravina Ladva, Swiss Re’s digital transformation officer.
Swiss Re already offers to price risk by observing the number of advanced driver assistance systems (ADAS) fitted to a vehicle, calculating a vehicle’s capability under various traffic conditions considering safety and also the cost of repairs.
Daimler, which has spent decades advancing the driver assistance systems, sees an opportunity for monetizing its know-how about auto safety.
Ingo Telschow, chief executive of Daimler Insurance Services, said the company was going deeper into the value chain of the insurance business, having more impact on product development and pricing.
Apart from technological advances in the area of automated and connected automobiles, customer behaviour is also moving from long-term ownership to short-term usage, creating new insurance challenges in the area of pricing and handling of claims.
Movinx will position itself as a so-called Managing General Agent (MGA) to help insurers launch new products throughout a range of currently fragmented markets, using a new jointly owned risk technology base.
The first insurance products and services are scheduled to launch in France in 2021. In the coming years, further market entries are planned throughout Europe, in the Americas, and in Asia.
“We want to offer products for people who use car-sharing for minutes, or long-term insurance, or cover for a rental, or subscription. Movinx will start with a motor insurance focus and explore mobility elements to enhance the respective solutions,” Telschow said.
The joint venture will be open for cooperation with automakers or mobility service providers, the two companies said.