Dinsurer Talanx wants to work with start-up Neodigital to produce software for itself and other insurers. To this end, the Talanx subsidiary HDI and the insurtech company Saarland have founded a joint venture. Together they want to develop software for the digital processing of claims in property and casualty insurance and then sell it to the competition as an individually adaptable solution.
“Our claims system is reaching the limits of automation,” said Christopher Lohmann, FAZ HDI board member. “There were several options from which we decided to make a new claims system in a joint development with Neodigital.” 400,000 customers with digital home and liability insurance, among other things, and geared its own IT system for fast payments and fast communication Car insurance plans to start soon.
“We’ve collected a lot of claims data and now we want to combine it with information and data from the HDI,” said Stephen Voss, founder and CEO of Neodigital. This allows you to further develop your own technology model. The system must be designed in such a way that it can also be used by other insurers with some adjustments. The joint venture has no employees of its own, but can use the resources of both partners as needed. It is designed for profit.
There were three options, this is the middle ground
HDI was faced with the question of whether to use standard software from an IT vendor in the future or develop its own system. As a third option, cooperation with Neodigital came into play. “Based on the high-performance platform of a successful insurtech, we are jointly developing a claims system tailored to our needs,” said Lohmann. In the joint venture, both partners share management. At the same time, HDI is also buying shares in Neodigital, in which former AWD boss Carsten Maschmeyer is also involved with his investment company.
Neodigital has been a latecomer to the wave of startups in the insurance industry since 2015. However, the management consists of a number of industry-experienced managers who have reached the limits of digitization in established companies. Instead of continuing to test higher levels of automation in a very conservative environment with little willingness to change, they have chosen to found their own digital insurer from scratch, where many processes are automated, from application to claims processing to payment.
“Today, speed is no longer a hygiene factor, but rather contributes to customers’ service expectations,” says Voss. Consumers have become accustomed to the services of digital companies such as Amazon or Ebay and have created new expectations about their transparency. The joint venture offers the advantage of being able to better feed AI analytics with data from a large insurer.
Both sides benefit from the knowledge of the other partner, they both say. “Two competent partners are joining forces here,” said Lohmann. Together they could create an app that could be useful anywhere in the market. “We achieved quality improvement of our existing processes through more data,” said Voss. The speed of the newcomer is combined with the strength of the customer experience of an established company.