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Financial Solutions
02 Aug 2018

Digital insurance platforms – important, but not an end in themselves

Why we need the best of two worlds


Digital business models have mushroomed in the last few years – and many of them have disappeared again. This is unavoidable. Those who quickly recognize the necessity to concentrate on special functionalities and certain target groups will survive. In this post, I will attempt to demonstrate how we at FRIDAY follow this successful path.

Brief description of FRIDAY: The company operates a digital insurance platform. It was founded in Berlin in 2017 with the support of the Swiss Baloise Group. Baloise is present in Germany with the Basler Insurances brand, among others.

FRIDAY pursues a lean greenfield setup, in order to offer attractive prices and keep our administration costs lower. And because we began on a “green field”, we are not affected by legacy processes or inherited IT liabilities. And so we launched in March 2017 with the first month-to-month motor insurance product in Germany: With the pay-per-kilometer rate, it is a real novelty on the market. So far, it has won over more than 15,000 customers.

Offering clear added value

FRIDAY targets German motorists with a clear added value. The motor pay-per-kilometer rate is of particular interest for occasional drivers and persons who find it difficult to estimate their annual mileage.

Innovation must be perceptible. For the customer, an innovation is only relevant if they themselves can draw added value from it. For example, the fact that our digital insurance platform was developed in the Cloud is an important innovation. But this has no direct customer benefit. In this way, we reduce costs and can sustainably offer lower prices. But the customer does not notice this directly. With the pay-per-kilometer rate, the added value can be derived from the name itself. The less you drive, the less you also pay FRIDAY. Motorists can be certain that they will never pay too much for their insurance. This is built-in fairness and flexibility. The principle is known to millions of Germans in electricity billing.

The team counts

Anyone wanting to successfully prevail on a green field needs a team. Ultimately, it is like football: You need the right player at every position and the right amount of team spirit. Nothing will run without communication on the field. This was recently very evident in the World Cup.

A scalable company cannot be built with insurance expertise, regulatory knowledge and the right strategy alone. Coworking spaces, Kanban boards and design thinking certainly make the working day more diverse and attractive, but for a successful company, you first need an experienced and diverse team. The secret is in the mix. At FRIDAY, developers, coders, UX designers and scrum masters work together with actuaries and loss experts – sometimes a wild mix, but our success proves us right.

Transparency and fairness come into play

FRIDAY addresses its customers with an innovative insurance product. It offers a digital experience familiar to customers of Amazon or Zalando, and which also awaits them in other fields. The big interest in the pay-per-kilometer rate with precise kilometer billing showed us very early on that we hit a customer nerve.

I think that digital insurance companies will only land their role in the customer interface with fair and transparent products. An important success factor will be efficiency in order to offer attractive prices. This is only possible if you constantly provide the best possible service – alone or in cooperation. Cooperating with strong brands such as the Baloise Group and BMW is therefore important. Because the best solutions for the customer are often only possible through partnerships in the digital eco-system. New partnerships and cooperations will therefore shape the market more than before.

Lukas Jaworski,
Co-Founder FRI:DAY,
German branch of FRIDAY Insurance S.A.

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