Deutsche Bank’s newest effort to reinvent itself and reassure investors it has a profitable future is a partnership to offer online property and casualty insurance policies to its customer base.
Germany’s largest bank is resurrecting the concept of “Allfinanz” or “bancassurance” with a new twist that it hopes will improve on the mixed record of banks selling insurance products. By partnering with an insurtech startup, Friendsurance, Deutsche hopes to harness disruptive digital technology to better match the product to the customer’s particular needs.
“Different objective criteria go into the appraisal,” says Tim Kunde, co-founder of Berlin-based Friendsurance. “Along with the price comes the question of how financially stable the insurer is or how good its customer service is.” As with other types of fintech products, insurtech applies algorithms and artificial intelligence to sorting through these criteria.
Deutsche Bank plans to establish its own insurance brokerage, operated by Friendsurance, to sell insurance through its online bank. It will not be just a platform to compare prices, nor will it be just a link to its partner, Friendsurance. Rather, it will perform the function of a traditional insurance broker advising the customer if a policy is a good fit or if there is a better alternative.