It looks like ONE Insurance is bringing the concept of telematics into people’s way of living.
Partnering with reinsurance giant Munich Re, as well as with geo-location specialist Axon Vibe, the digital insurer has rolled out its “ONE Coach” feature, which it said anonymously examines factors like working time, sleep, and movements using encryption technology. According to ONE, motion sensors and the mobile phone’s GPS module serve as the data source – enabling its app users to monitor how their risk assessment scores are impacted by their lifestyle choices.
“Having a low-risk score provides bonus points which can be converted into insurance rate reductions,” said the insurtech when it announced the joint venture. “In the mid-term, ONE plans to offer ‘real-time’ short-term insurances based on customers’ individual lifestyle.”
ONE co-founder and chief marketing officer Alexander Huber explained: “Thus far, insurance rates for customers were comprised of statistical calculations. This is how individual risk was calculated. However, this is far away from a customer’s living conditions.”
The digital insurer described the collaboration as the “biggest joint venture in insurtech history,” without disclosing its financial terms.
Meanwhile Julian Teicke, founder and chief executive of parent firm wefox Group, shed light on the roles played by Munich Re and Axon Vibe.
“Munich Re provides the metadata about risk and Axon Vibe acts as the required independent data intermediary that only sends us pre-authorised trigger information about consumer behaviour to utilise the metadata of Munich Re in a contextual setting in real time,” he noted.
With offices in Liechtenstein and Berlin, the insurtech promises to “tailor your insurance to your life” using customers’ habits, data, and location-based geo-triggering.
“Our strategic alliance allows for usage of data entirely unknown to the insurance industry as yet,” commented Munich Re executive director Tobias Sonndorfer. “Combine this with the power of an independent, fully-digital insurer, and you understand the impact our joint venture will have in changing the insurance business as a whole.”