It's always great to see start-ups and incumbents working hand in hand. I particularly love this example of how Munich Re and Bought-by-Many are teaming up to offer specific insurance products for niche customer segments.
Not only does this unite start-ups and incumbents, but has also resulted in breaking down a well documented industry challenge, and has helped Munich Re access new profit pools. To think that by as early as October we could have the UK’s first travel insurance without a medical question is fantastic.
One by one, partnering with these more fleet of foot startups - we can start to pick off specific industry and customer challenges.
As said in the article, investing in these start-ups provides reinsurers with an opportunity to diversify without encroaching on the business of their big insurance-company clients. For this reason, they make the ideal investor for insurance start-ups.
When Micah Carr-Hill wanted to insure Chief, the Labrador that helps with his son’s autism therapy, he found an ally in Munich Re, the world’s biggest reinsurer. The German company had just teamed up with a U.K. internet startup to provide pet insurance with the comprehensive cover Carr-Hill needed. Munich Re’s investment in London-based Bought By Many, which helps its customers find coverage for everything from bulldogs to Kindles, is an example of how reinsurers are plowing money into niche fintech providers to boost waning profits. “Among the thousands of startups out there, some really good ones will emerge,” Torsten Jeworrek, a member of Munich Re’s management board, said in an interview. “We want to be at the forefront of this.”