Every insurtech should take note of this success for Wrisk.
Wrisk and BMW had to overcome a clash of cultures for a start.
"Criteria include meeting customer needs, whether the startup fits into our strategy, and just if we could we work with the people,” Combe says.
He admits that there is a big culture clash between corporates and startups, but says this is “part of the joy of the whole thing”.
“One of the startups asked to speak to three people from different parts of the business. He said he was there until 7pm. It was 2pm. His default setting was the next few hours whereas ours was schedules, calendars and PAs. We learned it’s not okay to wait two weeks, sometimes it has to be the next 24 hours,” Combe says."
Jonny Combe, general manager of product and channel development at BMW, tells Techworld.
However, BMW didn’t proceed with a commercial relationship with one of the startups: Warwick Analytics.
Combe says: “What they’d put together was interesting, just not compelling enough for us to invest a lot of money…we never aimed to have commercial arrangements with five out of the five.”
This is vital for insurtechs; they must know WHY their solution is going to be compelling to customers. If not they are in deep danger of interest taking up time and draining their funding. In fact, 90% of insuretchs will fail that way.
Wrisk and BMW are also anticipating the future.
"Barton (Wrisk co-founder) notes that the nature of car ownership is changing, with shared ownership and ride hailing services on the rise thanks to the likes of Uber and ZipCar. "So [BMW] needed insurance to move with that and saw more flexibility with our platform and ability to wire in telemetry and various data points," he said. "So who knows what the world ahead looks like, but they wanted to know they had a platform and an organisation that would move fast and work with them responsively." Tech Risk from IDG
The next challenge will be successful roll-out across BMW UK and then globally.
There is a sting in the tail for incumbent insurers.
"As a result the carmaker is ending an existing partnership with a legacy insurance provider, and any insurance sold directly via BMW or Mini networks in the UK will now be via a platform designed by Wrisk, including the possible reintroduction of seven day free drive away insurance." Tech Risk
Insurers are faced with competing with or partnering with insurtechs like Wrisk. Or beating them at their own game. That is a challenge in itself and you'll ways of succeeding here "Paris, London, Munich & global hot insurtech startups- what's in it for insurers?"
For insurtechs who wish to achieve the same success as Wrisk you may wish to read "INSURTECHS- are you selling a tool or a solution?"
German automaker BMW has chosen two-year-old London-based insurtech company Wrisk to be its sole insurance partner in the UK after the company recently completed a ten-week stint in its innovation lab. It is a case study in the unexpected benefits of entering a corporate innovation programme, with Wrisk entering as a wildcard candidate last year and ending up with a commercial agreement to be the sole insurance provider distributed by BMW's financial services arm in the UK. As a result the carmaker is ending an existing partnership with a legacy insurance provider, and any insurance sold directly via BMW or Mini networks in the UK will now be via a platform designed by Wrisk, including the possible reintroduction of seven day free drive away insurance.