Munich Re has partnered with digital insurer ONE in the development of the new ONE Coach feature, a highly-personalised short-term insurance product based on individual lifestyle and location, in what it claims is the biggest joint-venture in Insurtech history.
The feature will use encryption technology to utilise factors such as work time, sleep, movements and various lifestyle choices in more precisely calculating a customers’ risk profile. The service has been likened to a video streaming service, with a monthly subscription model and 2-hour claim processing time.
ONE Coach will see the world’s largest reinsurer Munich Re work with Axon Vibe Axon, the venture of Google Maps Founder Stefan Muff.
Julian Teicke, Founder and Chief Executive Officer of insurance platform WEFox Group, has made assurances of full transparency in regards to the processing of personal data, stating, “Data collected from people needs to be in the ownership of people. The collaboration with Munich Re and Axon Vibe allows us to reinvent insurance from the ground up and at the same time enter into a new paradigm of data privacy.”
“Munich Re provides the metadata about risk and Axon Vibe acts as the required independent data intermediary that only sends us pre-authorised trigger information about consumer behavior to utilise the metadata of Munich Re in a contextual setting in real time.”
ONE is the first non-life insurer with cashback in case of no-claims. ONE Coach is supposed to add to this, but won’t be implemented as a pure bonus system. An overview-window within the app anonymously shows the evaluated points, e.g., points for lunches, vacations, risk areas the customers are frequenting or idle periods.
“ONE has an insurance product architecture under construction which will push experiences ahead of the entire market regarding features like adjustable short-term coverage, micro modularisation of risks and real-time utilisation of IoT-data,” said Stephan Ommerborn, CEO, and Co-Founder of ONE.
Ommerborn continued, “The Joint Venture with Axon Vibe and Munich Re-enables us to put a remarkable footprint into this entirely new territory of geo-triggered insurance, also known as “UBI” (usage-based insurance). Clients will have seamless opportunities of proactive risk advisory instead of only being paid after unfortunate claim events.”
Alexander Huber, Chief Marketing Officer and Co-Founder of ONE, commented, “Thus far, insurance rates for customers were comprised of statistical calculations. This is how individual risk was calculated. However, this is far away from a customer’s living conditions. Using ONE Coach, customers are for the first time able to monitor in real time how their individual lifestyle choices affect their risk assessment score.”
“Motion sensors and the mobile phone’s GPS-module are used as data source. The advantage for the client: Having a low-risk score provides bonus points which can be converted into insurance rate reductions. In the mid-term, ONE plans to offer‚ real-time’ short-term insurances based on customer’s individual lifestyle.”
Tobias Sonndorfer, Executive Director of Munich RE, said, “Our strategic alliance allows for usage of data entirely unknown to the insurance industry as yet. Combine this with the power of an independent, fully-digital insurer, and you understand the impact our joint venture will have in changing the insurance business as a whole.”
Roman Oberli, CEO Axon Vibe, added, “We are pleased to join forces with world market leader Munich RE and ONE, one of the most ambitious Insurtechs globally, to enter the field of UBI (Usage-based Insurance) thereby laying the foundation for further products of its kind within the insurance industry.”