ONE Insurance, Munich Re team up for personalized insurance
European insurtech ONE Insurance is partnering with Munich Re to offer personalized insurance programs using sensor data.
The ONE Coach platform, which underlies the products, assesses risk and suggests insurance packages based on an individual’s lifestyle. Using encryption technology and motion sensors from a user’s mobile phone’s GPS module as the data source, customers monitor in real time how their habits and lifestyle choices impact their risk assessment score. An overview screen within the app anonymously shows the locations an individual frequents for lunch or vacations, for instance, and also tracks idle periods.
The first product will be for vacations. After the policyholder input his or her information, the ONE Coach system takes into account the trip’s duration and then automatically delivers an offer via push notification.
“Clients have seamless opportunities for proactive risk advisory instead of only being paid after unfortunate claim events, explains Alexander Huber, ONE’s co-founder and CMO. “Having a low-risk score provides bonus points which can convert into insurance rate reductions.”
Huber points out that ONE built ONE Coach as a digital lifestyle companion for its customers. “It’s beneficial for all parties and we believe that usage-based insurance is the future. It is transparent, fair and helps to save money because customers are able to cover only crucial situations in their life,” he says.
The app-based platform enables customers to instantly report claims, and the company pays about 60 percent of all claims the same day.
The company compares the new offering to a video-streaming service because it has a monthly subscription model and short, two-hour claim processing times. ONE Coach automatically offers customers insurance via push notification. After accepting the policy, the coverage ends automatically if the policyholder leaves the country or if any other trigger occurs.
Munich Re provides the metadata about risk and Axon Vibe acts as a required independent data intermediary that only sends pre-authorized trigger information about consumer behavior to contextualize the metadata. While launching ONE Coach, ONE’s parent company and investor WeFox Group is also now working on an online platform that can provide users with an overview of the data used with the ability to delete information at any time.
“Especially with the European debate concerning data protection, we believe in empowering customers through education and also offer full transparency regarding the processing of personal data,” Huber notes.
The product is launching first in Germany, focusing on the younger market who are comfortable interacting digitally and who are geographically mobile, well-connected and always seeking new technology solutions. The company plans to expand the coverage to Austria, Switzerland and Spain.