is a new insurance model possible?

is a new insurance model possible?

In recent years, a young French insurtech has attracted a lot of attention. Several reasons for this: conclusive and close fundraising but, above all, a model of insurance offering unique in France, based on trust and community. Selectra therefore decided to make the presentations: discover Otherwise.

Insurance: Otherwise, think about insurance differently

How to rethink insurance in 2019?

As the start of the school year slowly prepares – even if it is unfortunately already here for some – it is interesting to take a step back from insurance news and look at its new players. In July 2019, we were talking in particular about the French insurtech Otherwise on the occasion of its second fundraising of 2 million euros. The young company created in 2016 by Aymeric Augustin, Cécile Mérine and Raphaël Berge also saw on this occasion the entry of a newcomer to its capital. But above all, this money confirmed its potential and made it possible to finance the diversification of its collaborative insurance offers and the improvement of those that the insurtech already offers.

Car Otherwise embodies an alternative insurance model, which is far from going unnoticed. The insurtech, which functions as an online broker, already offers numerous offers, whether complementary health insurance for individuals and professionals or coverage for pets. And that's not all, since the money from the fundraising also allowed Otherwise to work on the launch of its new car insurance.

At Otherwise, we believe that players from the traditional collaborative economy and those from the digital economy complement each other and have everything to gain from working together. We demonstrate this by structuring our insurance products with insurers such as Generali, Maif or Thélem Assurances.explained in an official press release Cécile Mérine, co-founder and general director of Otherwise.

Otherwise represents an opportunity for insurance to build itself differently. The platform is a trademark of the insurance broker Amalfi. It is therefore not strictly speaking an insurer, even if it has all the functions. Thus, each of its offers was developed alongside partners: Thélem Assurances for health, Generali France for pets and Altima Assurances (Maif) for cars. Otherwise's role is that of a service and advisory intermediary to choose the best insurance for their clients. His role ? Develop offers that reflect their concrete needs.

During its first funding round in 2017, Otherwise already raised 1.6 million euros.

Otherwise: a collaborative and community insurance model

The principle of Otherwise is based on a simple concept: the virtuous circle. Indeed, its most exemplary customers are favored, whether those of its health, auto or pet offers. The insured are therefore gathered in groups. They are chosen based on similar criteria. At the end of the year, Otherwise redistributes everyone's contributions, if of course the members of the group have not exhausted their common kitty. Namely: if all the contribution money collected over the year has not been spent on compensation for claims. Otherwise states, it is possible for the insured to recover up to 50% of their initial contribution each year.

The insurance industry is transforming, and platforms like Otherwise are setting the pace for change.

This system, based on community and independence, makes policyholders accountable and is therefore intrinsically supportive. Because the members of the group of insured persons are not isolated, they can communicate with each other. This brings a truly collective aspect to Otherwise's approach, which relies on trust.

As part of their automobile offering, Cécile Mérine explained in particular in a dispatch from the Option Finance Agency – or AOF – that “ car policyholders are familiar with the concept of bonuses: with a good bonus, insurance is less expensive. By extending it collectively to the community of our policyholders, we give them the opportunity to benefit even more if their collective efforts to drive well have borne fruit. “.

For her, this “ transparent and virtuous mechanism, which gives everyone a chance “. And that basically sums up Otherwise's state of mind for all of its offers, and of course its vision of insurance.

Otherwise's platform is entirely digital. It is representative of what insurance can ultimately become: a new model, which does not deny the past, but takes into account the changes of our time. Otherwise sees insurance as a service that is both collective and essential, thanks to which everyone can benefit from taking responsibility. And who knows what insurance service will look like in the future, with the arrival of home automation in the sector?

For each Otherwise offer, part of the contributions is obviously paid to the insurer responsible for the most significant losses.

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