If you have a car, you have to take care of a lot of things: buying, maintaining, selling the used car, financing and registering with the traffic authorities. The three insurers HUK-Coburg, LVM and HDI now want to score points with their 18 million auto insurance customers by helping them do all of this. To do this, they founded the Prisma platform, the working title, which should hit the market in 2022.
Prisma should digitally offer everything related to cars except insurance. “It could be all kinds of services, including oil changes, brakes, emissions testing or general inspections,” says Prisma boss Alexander Hund. The customer enters: “need a general inspection”. The platform gives him names of workshops where he, as an insurance customer, can get a good price for any repairs that may be needed, and can even have an appointment. In addition, services such as registration, financing or the sale of cars can be offered through the platform. “We can map anything you do as a driver.”
The platform itself does not want to appear aggressively in the market. Either the insurer makes the offers to its customers, or a service provider such as a chain of automotive workshops offers its services to policyholders via the platform.
Insurers often lack direct contact with customers
Once the customer has registered on the platform via their insurer, the impetus to action does not necessarily have to come from them. “It is conceivable that we could use artificial intelligence to know when a customer needs the next oil change, when financing may be due or when an older vehicle is sold,” says Hund. Then a tailor-made offer can be made. “It is also possible that we then know that there is still a free appointment in a workshop on Friday at 10 am, and we can book it right away.”
Until recently, Hund operated the Check 24 comparison portal. The fact that the three insurers are picking him up indicates what it is: they fear losing direct contact with the customer. Because platforms like Check 24 or Amazon are located between the supplier and the customer. Those who have taken out their policy through Check 24 often do not know exactly where they are actually insured, for them it is Check 24.
The negative consequence from the point of view of insurers: they can no longer make their own offers to customers because they have no direct contact. Vehicle manufacturers’ mobility platforms also pose a threat to insurers. They now also offer insurance, as well as all kinds of value-added services for motorists.
Everyone is welcome – even Allianz
Prisma could give insurers the reins of action. After all, the largest auto insurer HUK-Coburg with the number four in the market, LVM, and the important company HDI have merged. Other participants are welcome. “We are not excluding anyone.” What if the alliance comes? “Everyone is welcome.”
Now, the alliance is highly unlikely to join an initiative by its big rival HUK-Coburg, which took the leadership of the Munich-based auto insurance market from them in 2011. However, the new platform puts Allianz under considerable pressure to come up with similar solutions.
A lot is changing in the market, Hund observes. Vehicle automation is advancing rapidly, as are telematics tariffs and similar offers. “In addition, many customers also expect us to be offered complete solutions.
In collaboration with other insurers, HUK-Coburg already operates a network of workshops which also offers customers services apart from the repair of insured damage. And each insurer could theoretically offer different services with 20 or 30 different providers. “But it would take a long time and be very expensive,” says Hund. “With the platform, you can offer a variety of different services very easily.”
The Hamburg-based startup SDA provides the IT technologies with which the platform intends to make tailor-made offers. A number of insurers are involved in SDA – including Allianz indirectly. Hund mainly wants to develop Prisma with SDA employees. Later, the platform itself will have around 50 employees.
It is supposed to be financed thanks to the contributions of the insurer. She does not want to negotiate commissions with workshops and other providers. If there were such commissions, they would be settled between the insurer and the service provider.
If the system worked and Prisma proved useful to customers, the platform could dramatically change the auto insurance market. Those who like it because it relieves them of a lot of trouble are less likely to change car insurer because of the price difference of 20 euros.