Deutsche Bank has announced a new strategic partnership with Insurtech firm Friendsurance. The arrangement will see the two companies working together to advise clients and help them take out and manage insurance policies. Deutsch Bank’s goal is to make it more simple, transparent and convenient for clients to arrange insurance. Deutsche Bank said it will integrate Friendsurance’s digital products into its online banking portal with bank clients being able to use the insurance features in mid-2018.
Deutsche Bank notes the profound opportunity in the insurance industry. Premiums for indemnity and accident insurance totaled €66 billion in Germany in 2016. Approximately 27% of these premiums were negotiated by insurance brokers. Deutsche Bank and Friendsurance expect clients will increasingly turn to digital brokers for their insurance needs in the coming years as Insurtech eliminates the need to deal with a broker and pay the high fees associated with the current process.
Markus Pertlwieser, Chief Digital Officer Private & Commercial Clients at Deutsche Bank, explains that Deutsche Bank wants to become their customers “main digital bank.” They are not ready to relinquish their importance in dealing with client’s money – even as pressure from challenger banks intensifies.
“Many of [our clients] want a reliable platform where they can efficiently manage all their financial needs and where they can get products that go beyond what traditional banking services offer. Digitalisation is creating the technological framework to make this possible. The insurance manager function is a logical addition to our digital offering and we have found the right partner in Friendsurance,” says Pertlwieser.
Tim Kunde, Managing Partner and co-founder of Friendsurance, adds that the cooperation will help raise client satisfaction levels and inspire greater loyatly to the bank.
“And we are opening up to new, internet-savvy target groups.”
Using the Insurtech features, customers will be able to see all their insurance policies together with key details such as notice periods, coverage and a claims history, all at a glance. It will also be possible for clients to manage their insurance policies online, to compare policies and conditions and, if necessary, change insurer or take out a new policy.
Users may also manage claims all online. Alternatively, they may always call a “hotline” and speak with a qualified insurance expert.
Deutsche Bank’s insurance partner covers products offered by every single insurer on the market. When selecting a policy, the determining factor is that the insurer applies the same criteria that leading consumer protection groups do. So the insurance manager function will not just come up with the cheapest insurance policies but the most suited to each individual client’s needs and situation.