ERGO, O2 Telefónica and Telefónica Insurance launch embedded insurance product throughout Germany

ERGO, O₂ Telefónica and Telefónica Insurance have joined forces in the field of embedded insurance. Embedded insurance means insurance that is integrated into a third party’s products or services, whether it be insurance on the device when purchasing an electronic product, for example, or travel insurance. In future, O₂’s private customers can book supplementary insurance digitally with just a few mouse clicks, and insure their everyday lives according to their needs. Billing is done automatically via the existing O₂  invoice.

The first product – “O₂ Care | Mobility” – launches on 7 August, and offers its private customers a mobility guarantee in case their rental car breaks down or their bicycle gets a flat. Users can also get support from a 24/7 assistance hotline. They also have the option of reducing the deductible per claim for “shared mobility” vehicles such as cars, (e)-bikes or scooters throughout Europe.

“O₂ Care | Mobility” can be booked for €4.99 per month, with a minimum term of 12 months, using the digital O₂ channels from O₂ Mobile post-paid and O₂ Internet@Home customers. After the minimum term has expired, the product package can be cancelled at any time with 30 days’ notice.

The second product, “O₂ Care | Travel” will follow in autumn 2024. Among other things, it will include international health insurance with repatriation, rescue and recovery costs, as well as seamless travel and emergency assistance. The insurance can be taken out for both individuals and families.

Two further products for other areas will follow.

Mark Klein, Chief Digital Officer of the ERGO Group, said about the new products: “Embedded insurance is one of the most dynamic developments we are seeing in the digital insurance market today. It enables providers to combine traditional insurance policies with state-of-the-art technology and digital services. With embedded insurance, we are turning traditional insurance cover into ‘insurance-as-a-service’.”

Andreas Laukenmann, Chief Customer Officer at O₂ Telefonica, states: “O₂ Care combines ERGO and O2 Telefónica’s respective strengths: as one of the leading insurers in the embedded insurance segment, ERGO has proven expertise in the field, whereas we have direct access to millions of O₂ customers, and know exactly what they want and need. As a result, these new digital supplemental services offer them real added value beyond mobile and landline products, and underscore our consistent customer focus.”

Amaia Ayerdi Perez, Director of Business Development, Operations & Systems at the primary insurer Telefónica Insurance, adds: “As an innovative insurer and specialist in the field of digitalisation and digital insurance, we are delighted to be able to offer our customers innovative products in cooperation with ERGO. The embedded-insurance segment is highly relevant for our target group. We will continue to develop new products in the future, in order to offer our customers added value that meets the needs of the innovative and digital market, and constantly expands and complements our product portfolio.”

In the online business, embedded insurance is particularly appealing to younger policyholders. Sales of these products have risen significantly in recent years and the trend will continue. For example, the management and strategy consultancy McKinsey & Company’s “Global Insurance Report 2023” estimates that by 2030, more than 30% of premiums in the global private customer business in the P&C sector alone will be sold in such environments.

ERGO established itself as one of the leading insurers in this segment at an early stage, and has entered into numerous successful partnerships with companies from the online and traditional retail sectors.