New flat rate insurance: protection for pets, vehicles & more – financial experts are thrilled

New flat rate insurance: protection for pets, vehicles & more – financial experts are thrilled

In the current year-end business, the underwriter Fresh Insurance and the insurer Bayerische have brought a new flat rate insurance onto the market. This policy offers broad insurance cover in various areas such as personal liability, household contents, accident, pet owner liability, bicycle & e-bike and optionally electronics and items as well as motor vehicle insurance. The insurance cover covers all risk areas, even if the insured person does not own a pet, for example. If an insured person acquires a pet, it is automatically insured without having to take out a separate policy or increasing the premium.

The founders of Fresh Insurance are convinced that this model will appeal to many customers as it is tailored to a wide range of people and their risks. They also emphasize that the process for taking out their flat rate policy is considered to be the easiest on the German market and can be taken out after answering fewer than five questions.

As a risk carrier, Bayerische also sees great sales potential in this flat rate insurance for families, as it includes all important insurance for your own home in one contract, including vehicle insurance. The family flat rate can include up to five vehicles and costs from 169.50 euros per month for families and from 99.99 euros for singles.

Thanks to the lean closing process, product providers can keep distribution costs relatively low compared to the market. However, it is the intermediaries' responsibility to ensure that the flat-rate benefits within the flat rate policy meet the individual needs of their customers. According to Fresh founder Stroeh, the maximum compensation amount for fully comprehensive motor vehicle insurance is 75,000 euros.

Germany's largest broker pool, Fonds Finanz, was selected as the exclusive sales partner for the market launch. Affiliated brokers can already use the new product during current year-end business. Further broker pool and broker direct connections should be possible in the future. Fresh Insurance aims to establish flat rate insurance as an attractive alternative in the market and estimates the potential of such insurance to be up to ten percent of all new contracts in the composite sector over the next five years.

Fresh Insurance has already gained experience with a similar product that has been on the market since summer 2022. Element Versicherung acts as the risk carrier and sales take place exclusively via the WhatsApp messenger service. However, the motor vehicle risk was not covered here, which is now possible for the first time thanks to the cooperation with Bayerische. During 2024, the company plans to also offer intermediaries the option to sell this product via WhatsApp.

Source: According to a report by www.procontra-online.de