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

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[Music]

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hello everybody um thanks for having me

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my name is christian and i’m the ceo of

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element

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insurance

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based here in germany in berlin what are

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we talking

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about when it comes to insurance there

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are so many

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topics out there today i want to talk

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about the contextual insurance as a

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customer-centric sales driver

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for

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big enterprises or insurance companies

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or distribution

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agents

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out there in the world so what do we

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mean

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when we talk about the ecosystem

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and the the systems out there that

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deliver insurances to the end customer

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we believe we see a strong

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shift and a trend away

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from from the classical distribution

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channels to distribution channels that

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are embedded or contextual in

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ecosystems

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so digitization has facilitated

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worldwide

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overarching

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ecosystems

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combining various products and services

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within a given

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context and

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element builds according to their needs

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products so that the customer can find a

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widespread offer

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as it’s known in

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shopping and banking in mobility

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and in many other industries

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out there

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and this approach in all the other

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industries

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has led to a very customer centered a

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customized solution for everyone

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out there

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and i think this is

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this is the same way as businesses focus

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on specific parts

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of the value chain already outsourcing

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parts of their value chain to others to

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very specialized providers and i think

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the the classical industry um in germany

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is of course the car industry and if you

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if you buy a cds or a bmw the value

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chain that

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was actually done by mercedes or by bmw

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varies from 20 to 40 percent and the the

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reminder is actually delivered by

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specific and specialized suppliers we

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believe that this shift will also happen

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in the insurance

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industry what do we mean by the shift in

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ecosystems you have a highly fragmented

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market

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offering

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more like one fits most

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products

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right now

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and that is due to regulation being

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complexity sometimes culture

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whatever on the past dependent history

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we have seen the the industry’s value

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trade in most cases yeah is still

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fully

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say displayed in-house yeah it’s a

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dependent on

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a legacy

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i.t system it’s making it very hard for

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these incumbent

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players to digitize

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internally

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so this industry is struggling to offer

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integrated customizable solutions that

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are fitting um today’s needs and

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the consumer is

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looking

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for that solution but they are looking

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for that solution within the ecosystem

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within perhaps also the brands the

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trusted environment

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they are used to live in and to to be

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embedded in where they have where they

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have as i said um the trust

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to it

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and as i said also before the

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history has proven that being it

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in the shopping or in the travel

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industry that the consumer and the

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industry both diverge towards

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that trend

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so

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what are we offering as element

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in this game

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we are call it insurance as a service we

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say we are a wide label

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provider for insurance solutions how do

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we do that element is a tech company

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and

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a fully licensed insurance risk carrier

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we have proven

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that the market fit um is there we have

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onboarded more than

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30 business partners with

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many many customers

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and we strive to become the backbone of

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the pnc insurance ecosystem in europe as

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a supplier

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to the market

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not owning the end customer the end

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customer being part of the ecosystem

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being part of the point of sales part of

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the brand

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part of the company that actually owns

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the customer

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we offer

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in that game

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two options one is an upsell

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earn more money

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or b

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to enhance your core product offering

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with insurances so that your customer

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experience your core product offering is

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better than without an insurance product

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built in

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that’s what we call contextual insurance

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let me give you

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a couple of examples

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that we are doing there

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if you see now the customer being part

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of these ecosystems we build a cyber

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insurance product

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for vodafone we have built multiple

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products

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for volkswagen

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to do a leasing return protection in

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order to help volkswagen to have an

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easier leasing sales process and

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therefore enhance the product offering

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and therefore have a higher conversion

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of

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these cars

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however we also work with small

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companies

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example is

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a parametric weather

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insurance with a small startup aiming to

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distribute insurance products to farmers

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um in europe

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however talking and giving these

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examples is only one thing let me show

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you two examples

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here in a slide

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so one is what i mentioned the upsell

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example

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we worked with

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vodafone vodafone integrated

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into their offering a cyber protection

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cover a personal cyber protection cover

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so as you see it’s a customizable

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worldwide cover for private mobile phone

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users against cyber fraud for online

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shopping online banking and identity we

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integrated that in a way that of course

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you pay via your mobile um phone bill

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all you have to do in the verification

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at the very beginning identification

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that your mobile phone vodafone customer

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with your telephone number and the rest

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is done with one click including the

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push of your

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policies and all related um documents

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um to you

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so you have like an

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in-app

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a purchase flow

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and created

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for insurances why do we call it upsell

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because of course vodafone earns

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with each

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product

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sold

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i would unfortunately not assume

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that people buy

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vodafone because there is the insurance

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included but the insurance is an upsell

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to it however the next example

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is a different

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one where an insurance is a sales driver

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and the

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actual commission that might have could

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be earned with selling this insurance

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product is not the main driver the main

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driver is to increase the core product

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so the example is with volkswagen it’s a

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leasing return

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protection

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it protects the private car leasing

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against additional costs when returning

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the car due to scratches or bumps or

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other minor damages and

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the professional environment

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this does not reduce conversion

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so much

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company pays it’s

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part of an overall package however for

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private leasing which is a large

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future sales driver for most oems i’m

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out there this is still according to

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market research one of the main drivers

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why there is still a low

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conversion so integrating an insurance

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product into your purchase flow into the

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core product you increase the conversion

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and that’s what we have

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been doing and you see again everything

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is volkswagen and branded but the

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underlying product is fully done

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including the operations by element

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and these two examples i think

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show a bit what we mean with contextual

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insurance in an ecosystem environment

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the volkswagen ecosystem the vodafone

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ecosystem and we are just

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just a supplier of insurance products

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helping these companies to as i

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mentioned either upsell or enhance the

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core offering of their of their products

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that’s what we are building and that’s

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what we are building with tech

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with a home owned build proprietary

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platform

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and with being a fully regulated risk

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carrier so we are able to create a

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product and the product is tech and

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insurance within days

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fully customized and fully integrated

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into our b2b

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partners

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so if anybody is looking for something

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like that i’m very happy to talk to you

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thank you very much

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[Music]

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you

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