BlaBlaCar, Airbnb, and LeBonCoin: collaborative business models have long been removed from the insurance industry. It is through the assurance that these models arrived in France. Their principle is simple: bring together individuals so that they can pool their resources, and in terms of insurance, their risks. But beyond a simple pooling of the risks borne by each individual, it is also a question of encouraging responsible behavior and adjusting the costs incurred.

The end of non-refundable insurance

Recover part of your contributions: it is now possible

Otherwise: created in 2016, insurance tech diversifies its distribution with new partnerships

Launched in 2017, the collaborative offer of the start-up Otherwise, carried by the broker Amalfi, continues to expand. Its specificity: through a 100% digitalized customer experience, to offer innovative insurance, by creating interactive communities, and by returning to policyholders the part of their contribution that was not used by the community at the end of the year. Policyholders can thus recover up to 50% of the contributions paid, depending on the service costs incurred during the year. Otherwise is remunerated through contributions from partner insurers.

The broker's offer is growing over the months: after mutual funds, supplementary insurance, dog and cat insurance, car insurance should be launched in 2018.

New partnerships

Otherwise is also developing its distribution, thanks to new collaborations, by opening up to new commercial partners. On February 28, the opening of the platform to other local insurance brokers and agents was announced.

Thanks to this openness, Otherwise ensures the dissemination of its technology and enables its new partners to benefit from the flexibility of use of its platform, designed to easily integrate into brokers' operating methods via a customer area and a remote subscription model.

A new major partnership has also been concluded with the Federation of auto-entrepreneurs. The 80,000 members will thus be able to benefit from the collaborative health insurance offer offered by the start-up.

The values ​​of collaborative insurance meet clients' aspirations

In a market in full turmoil, the opening of Outside to third-party brokers confirms the growing trend of alliances between traditional players and newcomers. The multiplication of this type of collaboration appears above all necessary. Indeed, historical players need to offer their customers innovative offers, as close as possible to their concerns.

The values ​​carried are strong: fairness, solidarity, transparency. Collaborative insurance provides an innovative response to what policyholders are now looking for: insurance, yes, but otherwise. A response also to specific groups of insureds such as self-employed people, who can thus benefit from preferential rates, with a service adapted to their specificities.

Increasing competition in the insurance market in Europe

This sector has experienced a real boom in start-ups specializing in insurance, as evidenced by Wavestone's assurance radar. And this affects all areas: personal data, automobile, home… GAFAs and insurance companies continue to grab market shares from insurance companies, by offering innovative products that are more suited to customer needs.

In 2016, Europe is the 2 and continent after the United States with the most investment in assurance, led by Germany, the UK, and France. More generally in 2017, investments in insurance technology jumped by + 36% compared to 2016. To name a few French nuggets, the Top 3 fundraisers are as follows: Shift Technology with € 28m in 2017, Alan with € 12m in 2016, and finally + Simple with € 10m at the end of 2017.

The development of new insurer-start-up partnerships, and even the acquisition of start-ups by insurers, is on the rise, allowing insurers to capture new sources of income linked to specific needs.

Faced with this new competition and these new challenges, insurance companies have no other choice than to rethink their strategy, products, and business models.