ERGO, O2 Telefónica, and Telefónica Insurance have teamed up to offer embedded insurance, integrating insurance products into third-party services and products. This approach allows customers to purchase insurance seamlessly, such as device protection when buying electronics or travel insurance. O2’s private customers can now digitally add supplementary insurance with just a few clicks, and the billing will be automatically included in their existing O2 invoice.
The first offering, “O2 Care | Mobility,” launches on August 7. It provides a mobility guarantee for private customers, covering breakdowns of rental cars or flat tires on bicycles. Additional benefits include a 24/7 assistance hotline and the option to reduce the deductible for shared mobility vehicles like cars, (e)-bikes, and scooters across Europe. This service is available for €4.99 per month with a minimum 12-month commitment and can be booked through O2’s digital channels by O2 Mobile post-paid and O2 Internet@Home customers. After the initial term, the service can be canceled with 30 days’ notice.
Following in autumn 2024, “O2 Care | Travel” will offer international health insurance with repatriation, rescue and recovery costs, along with comprehensive travel and emergency assistance for individuals and families.
Two additional products are planned for future release. Mark Klein, Chief Digital Officer of the ERGO Group, highlights the dynamic nature of embedded insurance, stating that it combines traditional insurance with modern technology and digital services, transforming it into ‘insurance-as-a-service.’ Andreas Laukenmann, Chief Customer Officer at O2 Telefónica, emphasizes the synergy between ERGO’s insurance expertise and O2’s extensive customer base, delivering significant value to customers beyond mobile and landline services.
Amaia Ayerdi Perez, Director of Business Development, Operations & Systems at Telefónica Insurance, expresses enthusiasm for the innovative collaboration with ERGO. She points out that the embedded insurance market is particularly relevant for their target demographic and promises ongoing development of new products to meet the demands of the digital market and enhance their portfolio.
Embedded insurance is especially popular among younger consumers in the online business sector, with sales increasing significantly. According to McKinsey & Company’s “Global Insurance Report 2023,” it’s projected that by 2030, over 30% of premiums in the global P&C private customer sector will be sold in embedded environments.
ERGO has established itself as a leading insurer in this segment, forming numerous successful partnerships with both online and traditional retail companies.
