Christian Macht, CEO of ELEMENT, dives into: – Ecosystem Economy – how are ecosystems evolving around customers’ needs thanks to digitisation and how can insurance players make the most of this evolution? – A look at the highly fragmented insurance industry: How can we begin offering integrated, customisable solutions fitting to today’s market needs? – How ELEMENT can be utilised as a white label provider for insurance solutions
Transcript
0:00
[Music]
0:10
hello everybody um thanks for having me
0:13
my name is christian and i’m the ceo of
0:16
element
0:17
insurance
0:18
based here in germany in berlin what are
0:21
we talking
0:22
about when it comes to insurance there
0:25
are so many
0:27
topics out there today i want to talk
0:29
about the contextual insurance as a
0:32
customer-centric sales driver
0:35
for
0:36
big enterprises or insurance companies
0:39
or distribution
0:40
agents
0:41
out there in the world so what do we
0:44
mean
0:45
when we talk about the ecosystem
0:49
and the the systems out there that
0:52
deliver insurances to the end customer
0:55
we believe we see a strong
0:58
shift and a trend away
1:01
from from the classical distribution
1:03
channels to distribution channels that
1:06
are embedded or contextual in
1:10
ecosystems
1:12
so digitization has facilitated
1:15
worldwide
1:16
overarching
1:18
ecosystems
1:20
combining various products and services
1:22
within a given
1:24
context and
1:27
element builds according to their needs
1:30
products so that the customer can find a
1:34
widespread offer
1:36
as it’s known in
1:37
shopping and banking in mobility
1:41
and in many other industries
1:44
out there
1:45
and this approach in all the other
1:47
industries
1:48
has led to a very customer centered a
1:51
customized solution for everyone
1:54
out there
1:55
and i think this is
1:57
this is the same way as businesses focus
1:59
on specific parts
2:01
of the value chain already outsourcing
2:04
parts of their value chain to others to
2:06
very specialized providers and i think
2:09
the the classical industry um in germany
2:12
is of course the car industry and if you
2:14
if you buy a cds or a bmw the value
2:18
chain that
2:20
was actually done by mercedes or by bmw
2:23
varies from 20 to 40 percent and the the
2:26
reminder is actually delivered by
2:29
specific and specialized suppliers we
2:32
believe that this shift will also happen
2:34
in the insurance
2:36
industry what do we mean by the shift in
2:41
ecosystems you have a highly fragmented
2:44
market
2:45
offering
2:46
more like one fits most
2:49
products
2:50
right now
2:51
and that is due to regulation being
2:54
complexity sometimes culture
2:57
whatever on the past dependent history
3:00
we have seen the the industry’s value
3:03
trade in most cases yeah is still
3:06
fully
3:07
say displayed in-house yeah it’s a
3:10
dependent on
3:12
a legacy
3:13
i.t system it’s making it very hard for
3:16
these incumbent
3:18
players to digitize
3:21
internally
3:22
so this industry is struggling to offer
3:26
integrated customizable solutions that
3:30
are fitting um today’s needs and
3:33
the consumer is
3:36
looking
3:37
for that solution but they are looking
3:39
for that solution within the ecosystem
3:42
within perhaps also the brands the
3:44
trusted environment
3:46
they are used to live in and to to be
3:50
embedded in where they have where they
3:52
have as i said um the trust
3:56
to it
3:57
and as i said also before the
3:59
history has proven that being it
4:02
in the shopping or in the travel
4:03
industry that the consumer and the
4:06
industry both diverge towards
4:10
that trend
4:11
so
4:12
what are we offering as element
4:15
in this game
4:17
we are call it insurance as a service we
4:20
say we are a wide label
4:22
provider for insurance solutions how do
4:25
we do that element is a tech company
4:28
and
4:29
a fully licensed insurance risk carrier
4:33
we have proven
4:35
that the market fit um is there we have
4:38
onboarded more than
4:40
30 business partners with
4:43
many many customers
4:46
and we strive to become the backbone of
4:50
the pnc insurance ecosystem in europe as
4:53
a supplier
4:55
to the market
4:56
not owning the end customer the end
4:59
customer being part of the ecosystem
5:02
being part of the point of sales part of
5:06
the brand
5:07
part of the company that actually owns
5:10
the customer
5:12
we offer
5:13
in that game
5:15
two options one is an upsell
5:18
earn more money
5:19
or b
5:20
to enhance your core product offering
5:25
with insurances so that your customer
5:28
experience your core product offering is
5:31
better than without an insurance product
5:34
built in
5:35
that’s what we call contextual insurance
5:38
let me give you
5:40
a couple of examples
5:42
that we are doing there
5:44
if you see now the customer being part
5:48
of these ecosystems we build a cyber
5:51
insurance product
5:53
for vodafone we have built multiple
5:55
products
5:57
for volkswagen
5:58
to do a leasing return protection in
6:02
order to help volkswagen to have an
6:04
easier leasing sales process and
6:07
therefore enhance the product offering
6:10
and therefore have a higher conversion
6:12
of
6:12
these cars
6:14
however we also work with small
6:16
companies
6:18
example is
6:19
a parametric weather
6:22
insurance with a small startup aiming to
6:25
distribute insurance products to farmers
6:29
um in europe
6:31
however talking and giving these
6:33
examples is only one thing let me show
6:36
you two examples
6:38
here in a slide
6:40
so one is what i mentioned the upsell
6:43
example
6:45
we worked with
6:46
vodafone vodafone integrated
6:49
into their offering a cyber protection
6:53
cover a personal cyber protection cover
6:56
so as you see it’s a customizable
6:58
worldwide cover for private mobile phone
7:00
users against cyber fraud for online
7:03
shopping online banking and identity we
7:07
integrated that in a way that of course
7:10
you pay via your mobile um phone bill
7:13
all you have to do in the verification
7:15
at the very beginning identification
7:18
that your mobile phone vodafone customer
7:20
with your telephone number and the rest
7:23
is done with one click including the
7:26
push of your
7:28
policies and all related um documents
7:31
um to you
7:32
so you have like an
7:34
in-app
7:35
a purchase flow
7:38
and created
7:39
for insurances why do we call it upsell
7:42
because of course vodafone earns
7:45
with each
7:46
product
7:47
sold
7:48
i would unfortunately not assume
7:51
that people buy
7:53
vodafone because there is the insurance
7:56
included but the insurance is an upsell
7:59
to it however the next example
8:02
is a different
8:04
one where an insurance is a sales driver
8:07
and the
8:08
actual commission that might have could
8:10
be earned with selling this insurance
8:13
product is not the main driver the main
8:16
driver is to increase the core product
8:20
so the example is with volkswagen it’s a
8:22
leasing return
8:24
protection
8:25
it protects the private car leasing
8:28
against additional costs when returning
8:30
the car due to scratches or bumps or
8:33
other minor damages and
8:35
the professional environment
8:37
this does not reduce conversion
8:40
so much
8:41
company pays it’s
8:44
part of an overall package however for
8:47
private leasing which is a large
8:50
future sales driver for most oems i’m
8:54
out there this is still according to
8:57
market research one of the main drivers
9:00
why there is still a low
9:02
conversion so integrating an insurance
9:04
product into your purchase flow into the
9:08
core product you increase the conversion
9:11
and that’s what we have
9:12
been doing and you see again everything
9:14
is volkswagen and branded but the
9:17
underlying product is fully done
9:20
including the operations by element
9:24
and these two examples i think
9:26
show a bit what we mean with contextual
9:29
insurance in an ecosystem environment
9:33
the volkswagen ecosystem the vodafone
9:37
ecosystem and we are just
9:41
just a supplier of insurance products
9:44
helping these companies to as i
9:47
mentioned either upsell or enhance the
9:51
core offering of their of their products
9:54
that’s what we are building and that’s
9:56
what we are building with tech
9:59
with a home owned build proprietary
10:03
platform
10:04
and with being a fully regulated risk
10:08
carrier so we are able to create a
10:11
product and the product is tech and
10:14
insurance within days
10:16
fully customized and fully integrated
10:19
into our b2b
10:21
partners
10:22
so if anybody is looking for something
10:24
like that i’m very happy to talk to you
10:28
thank you very much
10:30
[Music]
10:38
you