FRANKFURT — Daimler and reinsurer Swiss Re on Monday announced a joint automotive and mobility insurance venture that aims to tap into a wealth of new data generated by highly automated vehicles to help insurers calculate risk.
The new company, a Berlin-based intermediary called Movinx, will be co-owned equally by the partners.
As connected and autonomous cars generate live data about traffic flows, vehicle performance and driver behavior, the companies expect new opportunities will arise to customize automotive and mobility insurance products.
“Even before cars come off the manufacturing line, we know the specific features and how that car would react in an emergency situation and we can provide a score to insurance partners to better underwrite the risk,” Swiss Re Digital Transformation Officer Pravina Ladva said.
Swiss Re already offers to price risk by looking at the number of advanced driver assistance systems (ADAS) fitted to a car, calculating a car’s capability under various traffic conditions considering safety as well as the cost of repairs.
Daimler, which has spent decades refining advanced driver assistance systems, sees an opportunity for monetizing its know-how about vehicle safety.
Ingo Telschow, chief executive of Daimler Insurance Services, said his company was “going deeper into the value chain of insurance business, having more influence on product development and pricing.”
Aside from technological advances in the area of automated and connected vehicles, customer behavior is also shifting from long-term ownership to short-term usage, creating new insurance challenges in the area of pricing and claims handling.
Movinx will position itself as a so-called Managing General Agent (MGA) to help insurers introduce new products across a range of currently fragmented markets, using a new jointly owned risk technology platform.
The first insurance products and services are planned to launch in France in 2021. In the coming years, further market entries are planned across 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 rental, or subscription. Movinx will start with a motor insurance focus and explore mobility elements to enhance the respective solutions,” Daimler’s Telschow said.
The joint venture will be open for cooperation with car manufacturers or mobility service providers, the two companies said in their statement.