In today's rapidly evolving digital landscape, telecommunications providers are uniquely positioned to expand their service offerings beyond traditional connectivity solutions. One particularly promising avenue is telcosurance – the integration of insurance products into telco customer journeys.
The current state of telcosurance
Our comprehensive market study of leading telcos across Germany, Austria, and Switzerland reveals that whilst some players have begun exploring this opportunity, most implementations fall short of their full potential.
The study shows a clear pattern: basic device insurance for smartphones, tablets, and smartwatches dominates the current offerings, with cyber insurance as the second most frequently offered cover. However, very few providers have ventured into more diverse product categories that could provide significant value to their customers.
Competitive landscape
Within the DACH region, Swisscom has emerged as a pioneer with their "Swisscom Sure" proposition offering the most diverse portfolio, including innovative products like:
- Flexible household insurance combining home contents and personal liability coverage
- Configurable legal protection insurance
- Rental deposit insurance
- Customisable leisure activity insurance
Meanwhile, most other telcos maintain a more limited offering despite having valuable customer data and billing relationships that could be leveraged for insurance distribution.
Business opportunity
The integration possibilities between telcos and insurers are particularly synergistic:
- Telcos possess customer data that insurers typically don't have access to
- Monthly billing structures allow for seamless premium collection
- Contextual insurance offerings (like travel insurance triggered when a SIM card leaves the home network) create natural upsell opportunities
As embedded insurance is projected to capture a significant market share in the European non-life insurance market by 2030, the time for telcos to establish their position is now.
Beyond today's implementation
Our analysis identified several missed opportunities in current telco-insurer partnerships:
- Expanding the product range beyond gadget insurance
- More seamless integration into the customer journey
- Greater utilisation of real-time data for contextual offers
- Extending the offering beyond property and casualty insurance
Ready to discover more?
Our full market study "Insurance Calling. A Market Overview and Trends in Telcosurance in the DACH Region," provides:
- Detailed analysis of insurance product offerings from the leading telcos in the DACH region
- Insights into successful integration models and customer experience design
- Organisation-level analysis of insurance carriers, policyholders, and claims administrators
- Strategic insights for telcos and insurers looking to capitalise on this growing opportunity
Interested in exploring the potential of telcosurance for your organisation? Contact our experts to discuss your specific needs and how Synpulse can help.
