Get Your Insurance Fix on “The Insurance Couch” Podcast! Join Oliver Lang, former CEO of InsurTech Unicorn Wefox/One Insurance, supervisory board member and advisor and Nikolaus Sühr, Co-Founder and CEO of InsurTech enabler ⁠⁠⁠⁠⁠⁠KASKO⁠⁠⁠⁠⁠⁠ as they bring you unique insights from their experiences in the insurance world.

This episode they talk about the attack on cross subsidies:

• In many lines, there’s a trend towards more price differentiation using additional data we have on customers. Some business models focus purely on capturing profitable customer segments.
• There are 4 ways for incumbents to react to this trend which can be combined:
1. Ignore and keep the way of cross-subsidy / solidarity that you’re used to.
2. Discredit the loss in solidarity and act by not allowing customers who go for their maximum profit to profit from the community’s solidarity when they are in a weak position.
3. Jump on the bandwagon and generate an additional line of tariffs / brand that captures the possibilities of stronger price differentiation while keeping the solidary part of the business alive.
4. Go all in and change you pricing structure to include the new normal of stronger differentiation.
• Depending on the specific situation, your profitability targets and moral position you must chose between and potentially combine your options.

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