O2 has unveiled its new digital insurance service, “O2 Care,” enabling private customers to book supplementary insurance seamlessly. The first offering, “O2 Care | Mobility,” is launched today, through a collaboration with ERGO and Telefónica Insurance in the field of embedded insurance. This innovation integrates insurance into third-party products and services, such as device insurance when purchasing electronics or travel insurance.
Seamless Digital Insurance
O2’s private customers can now easily book supplementary insurance digitally with just a few clicks. Billing is integrated into the existing O2 invoice, making the process effortless. The initial product, “O2 Care | Mobility,” offers a mobility guarantee, providing assistance in case of rental car breakdowns or bicycle issues. Customers can also benefit from a 24/7 assistance hotline and have the option to reduce the deductible for “shared mobility” vehicles across Europe.
Future Expansions and Pricing
Priced at €4.99 per month with a minimum 12-month term, “O2 Care | Mobility” can be booked through O2’s digital channels. After the initial term, the service can be canceled with 30 days’ notice. The next product, “O2 Care | Travel,” is set to launch in autumn 2024, offering international health insurance, repatriation, rescue and recovery costs, and comprehensive travel assistance for individuals and families. Additional products are planned to further expand the offering.
Strategic Collaboration and Market Impact
Mark Klein, Chief Digital Officer of the ERGO Group, highlighted the significance of embedded insurance: “Embedded insurance is a dynamic development in the digital insurance market, combining traditional policies with advanced technology and digital services. This transforms traditional insurance into ‘insurance-as-a-service.’”
Andreas Laukenmann, Chief Customer Officer at O2 Telefónica, emphasized the synergy between O2 and ERGO: “O2 Care combines ERGO’s expertise in embedded insurance with our access to millions of O2 customers. These new digital services offer real added value beyond mobile and landline products, reinforcing our customer-centric approach.”
Amaia Ayerdi Perez, Director of Business Development at Telefónica Insurance, added: “As a digitalization specialist, we are thrilled to offer innovative products with ERGO. The embedded insurance segment is crucial for our target group. We will continue developing products to meet the needs of the digital market and enhance our product portfolio.”
Embedded insurance appeals particularly to younger policyholders, with significant sales growth in recent years. McKinsey & Company’s “Global Insurance Report 2023” predicts that by 2030, over 30% of premiums in the global private customer P&C sector will be sold through such environments. ERGO, a leader in this segment, has established successful partnerships across online and traditional retail sectors, positioning itself at the forefront of this trend.
This collaboration marks a significant step in digital insurance, offering enhanced security, convenience, and customer satisfaction.
