Will the car insurance industry survive the 4th industrial revolution?


Published 2  January 2020

Nowadays, 20-40% of the premium of a P&C insurer is typically based on classic motor insurance products. But different megatrends will have a huge impact on the motor insurance industry worldwide. Autonomous and connected cars are not only a vision; we see them on the roads already. Electrification of mobility is booming, driven in part by the sustainability challenges humankind is facing. A growing sharing economy is emerging out of different economic and social trends. We may be best in class in what we are doing today, but the world is changing faster and faster. We at Baloise call this scenario for the future of mobility “The Three Zeros: Zero-emission, Zero ownership, and Zero accident.” This will fundamentally change the industry and its solutions for customers and partners.



Patrick Wirth
Director Innovation & Investment, Head of Mobility
Baloise Insurance, Germany

Not only the insurance business model is under attack

The entire mobility market is undergoing major changes. Big players - strong brands - in the field of mobility are struggling with their existing business models. The OEMs, for example, are under attack from pioneers like Tesla and the shift away from combustion engines. UBER has changed the taxi business and European newcomer Flixbus is redefining the way we travel. China is in many areas, such as zero-emission public transportation, on the forefront of the development and usage of new technologies. Such trends and offerings might also enter European markets in the foreseeable future.

Changes that put your business at risk but also open up new opportunities

These changes in the field of mobility will open up new service and risk coverage needs. The future of mobility requires new solutions and business models and the insurance industry is in a strong position to offer those across not only traditional risk coverage solutions but also new mobility-focused service offerings.

When entering new territories, you are lost without a map and a compass

We are convinced that Baloise has the capabilities to be a relevant future player in the new mobility ecosystems. However, the focus and intelligent use of our resources will be key. For this purpose, we want to understand the most likely scenarios of what the future might look like. Questions to be answered focus on the impact of different trends, the likelihood that they will materialize, and the possible picture of our mobility experience in Europe in 2030 and beyond. Baloise developed a map of trends and scenarios which will help us to find the best way forward in these turbulent times. New opportunities for insurance companies in the mobility space are out there – we only have to find them.


12-13 February 2020, Munich, Germany