Baloise introduces parametric insurance policies, covering bad weather, delayed baggage and flight delays
January 09, 2024 at 01:02 am EST
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Baloise Holding AG
/ Key word(s): Product Launch
Baloise introduces parametric insurance policies, covering bad weather, delayed baggage and flight delays
09.01.2024 / 07:00 CET/CEST
Basel, 9 January 2024. Baloise is launching three optional, parametric types of holiday insurance cover. The insurance technology Parasurance, which won the second prize at the Swiss Insurance Innovation Awards 2023, provides automatic compensation for customers if certain predefined parameters are exceeded – all without the customer having to contact Baloise.
Baloise is integrating three parametric types of cover into its holiday insurance, which can be taken out for trips lasting from two to 92 days. These new insurance modules – offering cover for bad weather, delayed flights or delayed baggage – supplement the company’s existing holiday insurance that covers cancellation costs, lost baggage and hire car insurance. Baloise is offering the new types of cover in partnership with KASKO, the start-up Wetterheld and InsurTech Blink Parametric.
A key advantage of parametric insurance is that the insured person does not need to actively report a claim. Instead, Baloise automatically contacts the customer as soon as the parameters set out in the terms and conditions of insurance are exceeded. The customer can then confirm the claim, which triggers payment of the compensation. “This is a paradigm shift in the claims settlement process because it is not linked to the reporting of a claim by the policyholder,” explains Yannick Hasler, Head of Private Clients and member of the Executive Committee of Baloise in Switzerland.
Carefree holidays with Parasurance: a closer look at the new parametric insurance policies
“Fair weather”: insurance for bad weather
If a certain level of precipitation is exceeded at the holiday destination during the trip, the customer receives an automatic claim notification. At the end of the holiday, the customer receives CHF 100 for each insured day on which the defined level of rain, snow or hail was exceeded. The insurance cover is available for holiday destinations in the European Union (EU), Switzerland and Liechtenstein and must be taken out at least 21 days before the policy is due to start. The cover is offered in partnership with German start-up Wetterheld, which is also responsible for tracking the parameters.
Insurance for flight delays
In the event of delayed departure by more than two hours, Baloise will cover the cost of access to the airport lounge or pay CHF 25, whichever option the customer prefers. If a flight is delayed by four or more hours, customers also receive a one-off payment of CHF 200. The insurance is valid worldwide and must be taken out at least two days before the policy is due to start. This insurance cover costs CHF 9. Each additional person to be included in the policy pays CHF 5. The cover is offered in partnership with Irish InsurTech Blink Parametric, which is also responsible for tracking the parameters.
“Baggage delayed”: insurance for baggage delays
If checked baggage does not arrive at the destination airport on time, Baloise will pay CHF 100 per item of baggage. Customers just have to report the delayed baggage at the airport and then enter the tracking number they receive in the dashboard to which they will have been given access shortly before the trip commenced. If the customer still does not have their baggage after 48 hours, a further one-off payment of CHF 200 will be made. The insurance is valid worldwide and must be taken out at least two days before the policy is due to start. This insurance costs CHF 9. Each additional piece of baggage to be included in the policy is charged at CHF 5. The cover is offered in partnership with the InsurTech Blink Parametric, which is also responsible for tracking the parameters.
Revolutionary insurance method
“Parametric insurance closes gaps in coverage and offers a fully automated claims process and more proactive customer communication. We want to harness these opportunities and gain experience with this type of insurance,” says Yannick Hasler. Provided that measurable parameters are available, this type of insurance has multiple areas of application, both in private and business client business. What is more, Baloise’s newly launched parametric insurance policies can be integrated into, for example, the purchase processes of travel firms and hotels as part of an embedded insurance approach.
Baloise is also using the modular holiday insurance to test the use of artificial intelligence along the customer journey. We are currently developing a GPT tool that can provide information on the terms and conditions of an insurance policy and generate an instant quote based on the data submitted. This, in turn, even allows an insurance policy to be taken out without any more forms having to be filled in. The use of AI promises to simplify decision-making processes and facilitate the efficient online purchase of insurance. It is also destined to become the go-to method for customers wanting to find information quickly and easily.
The focus is firmly on the future at Baloise. We aim to make tomorrow more straightforward, safer and more carefree for our customers, and we are taking responsibility for this today. Baloise is more than just a traditional insurance company. Through our smart finance and insurance solutions, complemented by a whole host of innovative offerings for the home and personal transport, we offer a complete service package. Dependable support, reliable cooperation and trust-based relationships are key aspects of our stakeholder interaction. We take care of financial matters so that our customers can concentrate on the important things in their lives and can find inspiration in the everyday. Baloise, a European company founded in 1863, currently employs 8,000 people at its headquarters in Basel (Switzerland) and across its subsidiaries in Belgium, Germany and Luxembourg. Our services generated a business volume of around CHF 8.8 billion in 2022. Baloise Holding Ltd shares (BALN) are listed on the SIX Swiss Exchange.
Baloise Holding AG is a Switzerland-based company that offers insurance and retirement solutions to private individuals and companies. The Company combines insurance and banking services and is active in Switzerland, Germany, Belgium and Luxembourg. The Company diversifies its activities into Non-life, Life, Asset Management & Banking and Other Activities business segments. The Nonlife segment includes accident and health insurances, as well as products of the liability, motor, property and marine sectors. The Life segment includes capital-forming insurance and risk covers, among others. The Asset Management & Banking operating segment encompasses banking-related areas of asset management as well as the actual banking area. The Other Activities segment comprises equity investment companies, real-estate firms and financing companies.
BÂLOISE HOLDING AG 
