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Daimler, Swiss Re Launch Mobility Insurance Venture | Investing News

Daimler, Swiss Re Launch Mobility Insurance Venture | Investing News

FRANKFURT (Reuters) – Swiss Re

and carmaker Daimler

announced a joint automotive and mobility insurance venture on Monday, seeking to tap into a wealth of new data generated by highly automated vehicles to help insurers to calculate risk.

The reinsurer and Daimler, parent of the Mercedes-Benz passenger car brand, set up Movinx, a Berlin-based intermediary they will co-own equally, the companies said in a statement.

As connected and autonomous cars generate live data about traffic flows, vehicle reflexes and driver behaviour, the companies expect new opportunities will arise to customise automotive and mobility insurance products.

“Even before cars come off the manufacturing line, we know the specific features and how that car would react in an emergency situation and we can provide a score to insurance partners to better underwrite the risk,” said Pravina Ladva, Swiss Re’s digital transformation officer.

Swiss Re already offers to price risk by looking at the number of advanced driver assistance systems (ADAS) fitted to a car, calculating a car’s capability under various traffic conditions considering safety as well as the cost of repairs.

Daimler, which has spent decades refining advanced driver assistance systems, sees an opportunity for monetizing its know-how about vehicle safety.

Ingo Telschow, chief executive of Daimler Insurance Services, said his company was “going deeper into the value chain of insurance business, having more influence on product development and pricing.”

Aside from technological advances in the area of automated and connected vehicles, customer behaviour is also shifting from long-term ownership to short-term usage, creating new insurance challenges in the area of pricing and claims handling.

Movinx will position itself as a so-called Managing General Agent (MGA) to help insurers introduce new products across a range of currently fragmented markets, using a new jointly owned risk technology platform.

The first insurance products and

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