Digital insurance: a cheap alternative without paperwork? - A financial expert explains things

Digital insurance: a cheap alternative without paperwork? - A financial expert explains things

According to a report from www.swr.de, the demand for digital insurance has increased significantly in recent years. Digital insurers such as “Lemonade” or “GetSafe” attract customers with low premiums and easy contract processing. However, there are some aspects to consider before choosing digital insurance.

One problem that arises when comparing digital and traditional insurance is the fine print. It may happen that digital insurance policies lack important services or that the insured amount of damage is much lower than with traditional providers. The case of “Lemonade”, a digital insurer, which was warned by the Association of Insured Persons because certain things in the house that did not belong to them were not insured was particularly controversial.

However, it may be worth considering digital insurance, especially if you are looking for new insurance. You may be able to achieve some savings with individual offers. However, you have to keep in mind that the entire insurance process takes place via an app or a browser and customer service that is available around the clock cannot be guaranteed.

Overall, from a consumer perspective, the differences between digital and conventional insurance can be classified as insignificant. It is important to compare insurance companies carefully and to be clear about the benefits and conditions.

This development has an impact on the insurance market. The increasing demand for digital insurance is leading to a growing market share for digital providers. While traditional insurance companies could be affected by increased competition, digital insurers could further expand their market share. This could lead to further fragmentation of the insurance market.

For consumers, this means more choices when looking for insurance. However, they must also critically examine whether the services and conditions offered meet their individual needs. In addition, it is important to be aware of the possible risks and limitations of digital insurance.

Overall, digital insurance is expected to continue to grow in popularity as it offers convenient and affordable options for insurance coverage. However, it is important that consumers carefully consider when choosing digital insurance and consider all relevant information to make the right decision for their individual needs and requirements.

Source: According to a report from www.swr.de