Movinx CEO Q&A: Embedded, global mobility insurance

March 14, 2022 12:43 PM

Digital Insurance received responses via email from Dr. Caro Gabor, CEO of Movinx, a joint venture between Swiss Re and Daimler Insurance Services. Dr. Gabor discusses Movinx, auto industry trends and embedded insurance.

The following responses have been lightly edited for clarity.

Could you tell me about Movinx?

The automotive industry as well as the auto insurance sector are undergoing significant transformation. There are developments on the technological side, such as e-mobility or automated driving. Also, the business model side changes from car ownership to usage, leading to more focus on rental and subscription models.

To stay ahead of this transformation Swiss Re and Mercedes-Benz entered a strategic partnership for automotive and mobility insurance services in October 2020.

Movinx was established as a joint venture by entities of Swiss Re and Mercedes-Benz Mobility Group. Movinx integrates automotive and mobility insurance products in a fully digital and seamless way at the point of sale of mobility service providers. In addition, it empowers OEMs and mobility companies with a platform that connects to primary insurers and various data providers to offer the best possible customer experience for mobility insurance around the globe.

Movinx is a global partnership that will work with local insurance partners to get the balance right in each market we operate in. There is, currently, no global insurance solution and we do not expect to have a one-size-fits-all approach to every single market, customer segment or single driver. In essence, this is the core of our model: the right, best-fit product for drivers – however they choose to move from A to B.

Our solution aims to strengthen driver protection in the mobility future by promoting road safety and encouraging investment into the initiatives that will better reflect society’s expectations of mobility performance – we will leverage our increased access to connectivity and information, to lead that change. What all the products will have in common across markets and customer segments are the easy and seamless integration where the customer needs it the most.

Is this embedded insurance and how does it work?

We are strong believers that the future of insurance is fully embedded. Customers already benefit from embedded experiences in a range of facets in their lives and insurance should be no different. It’s one of the last industries to start this transition.

A fully digital, embedded insurance experience will be better for drivers, OEMs and insurance providers alike – it’s the future. Using data available through the car, its safety features and the preferences of the driver, allows us to offer customers the best-fitting product and will make all subsequent processes around changing policy or filing claims truly seamless and simple.

Do you see more automakers partnering with insurers on products?

A consistent global insurance experience is not something that is being done anywhere, so it’s certainly a real opportunity for OEMs and insurance providers alike. However, what we know from experience, is that the solution doesn’t sit solely within the automotive or insurance sector – the right solution incorporates these two sectors and real innovation – tech innovation – and you need the right mix of skills and expertise to get that done.

The modernization of auto insurance – insurance in general – goes many steps further than ‘getting online,’ it is a true reimagining of what it is to provide effective, efficient and customer-focused service.

Companies have varying market strategies and automotive is no different. Providing their own insurance product is not feasible or attractive to most OEMs– this proposition is quite a niche and specific to a few.

What we expect embedded insurance will do, is open up this proposition to many – with a scalable, global platform that will make sense for others. Improving the customer experience by fully embedding the best-fitting product is something that is on top of the agenda of many global OEMs as it is a clear lever for customer satisfaction, brand loyalty and has a massive financial impact - especially in after-sales.

Anything else you would like to tell me?

What we are doing is not easily achieved. There are many challenges in determining global data standards and open interfaces; insurance is governed and regulated by very different jurisdictions and this is not likely to change even in the distant future. We solve that problem by an API-first approach that enables a modular structure of applications to be combined and reused based on the specific requirements. It is truly groundbreaking and will empower the future of what we think auto insurance should look like. This is why we have assembled a team of industry experts, successful entrepreneurs and tech experts to make this happen.