Daimler and Swiss Re establish digital insurer Movinx

Car insurance is also becoming an increasingly digital component within the mobility cosmos. To this end, Swiss Re and Daimler Insurance Services have entered into a strategic partnership for automotive and mobility insurance. The new company Movinx has now been founded. It will be based in Berlin. Sebastiaan Bongers, Head of Mobility Ventures at Swiss Re, and Andreas Roth, Head of Digital Insurance Model at Daimler Insurance Services, will lead the new company. The offices were opened in Berlin in October. The first insurance products and services are to be introduced in France in 2021. Further market entries in Europe, America, and Asia are planned in the coming years.

Both shareholders are expected to leverage their complementary expertise to establish a new business model. "The goal is to develop fully digital automotive and mobility insurance products that meet changing customer needs while offering first-class service quality."

Ingo Telschow, CEO of Daimler Insurance Services, comments:

"Through the cooperation with Swiss Re, we can actively shape the transformation in a changing market environment and advance the insurance business. Together, we are establishing a new business model and building an insurance platform. Additionally, as Daimler Insurance Services, we are becoming more deeply involved in the value chain of the insurance business and gaining more influence on product development and pricing."

Pravina Ladva, Digital Transformation Officer at Swiss Re, explains the joint venture as follows:

"We believe that the partnership with Daimler Insurance Services and the establishment of Movinx will further advance us on our way to innovative mobility insurance. Our shared long-term goal is to create an ecosystem where insurance supports the introduction of new technologies such as advanced driver assistance systems and autonomous vehicles, as well as new business models in the mobility sector."

With this, they aim to account for new usage forms, as business models are changing from ownership to usage. The insurance industry must adapt to cope with these developments and the associated challenges in pricing and claims handling. 

The shared vision: Flexible and fully digital automotive and mobility insurance products.

With the goal of creating a new business model, Movinx will act as a Managing General Agent (MGA). The new company aims to make insurance an integrated part of vehicle purchase. Instead of today's rather short-term collaborations between car manufacturers and numerous insurers in various countries, the focus is on a long-term partnership to offer flexible and fully digital products. Movinx enables the efficient introduction of new insurance offerings in a range of markets, for example through the underlying technology platform.

Cooperations with further partners possible

The joint venture will be open to collaborations with additional actors such as car manufacturers or mobility service providers. Future partners are expected to benefit from the shared insurance MGA and be able to offer white-label solutions globally. Instead of dealing with many insurers, the manufacturer has a cross-country partner with Movinx. Movinx will also cooperate with locally licensed insurers to offer solutions to end customers and cover insurance risk. Insurers and other partners can utilize the IT platform and benefit from centralized processes and automated workflows supported by artificial intelligence.

What does this mean?

Daimler and SwissRe are pooling their expertise in "digitalizing insurance". By connecting to the MGA platform, insurers benefit from not having to build rapidly changing and custom-made insurance programs. And customers receive "everything from a single source".