Corona is the dominating topic in these days. Hard to write about anything else. Even harder to puta spotlight on one of the most fascinating developments of the last 3-4 years. Writing to you as an observer of the German InsurTech landscape (and actually as manager of a traditional German insurance company) I can hardly hide my astonishment and enthusiasm about the Israel startup scene. It is fascinating to see the spirit of innovation, the entrepreneurial power and – yes! – also your risk-ignorance in a positive meaning.
If you add the favourable regulatory and legal structure – Moshe Bareket knows what I am talking about – it is no wonder why Israel is one of the dominating InsurTech-nations. Congrats!!
However, that does not yet mean a hell of business in Germany. Yes, Israel-based InsureTechs are present on each significant InsurTech-conference in Europe, from DIA to NOAH, GIR, MOI or Insurance Innovators. Moshe, Kobi Bendelak and so many other great representatives are doing their absolute best to push innovative Israel-InsurTechs forward. But what are the key-factors for success? At least in Germany? There are some simple factors to obey:
First: Know your customer! Sounds easy but is tricky! A great solution does not help if you did not check your customers IT-system, recent situation and sales-structure! Otherwise you won’t get far…
Second: You have to speak German. Sounds terribly old-fashioned, I know. But you will never get along with the IT-guys of your customer, if you don’t speak their language. They feel insecure and won’t really understand your solution. This is simply a „knock-out-criteria“.
Third: Find the „weak-point“: Check the value-chain of your customer – Which is the point where you can provide him a real benefit? Or solve one of his major problems? Can you also quantify his savings if he applies your solution? Than it gets interesting…
I had four international InsurTechs calling me in the last weeks to do business with my company. None had checked our structure. None knew our IT-system. None knew our problems. Only one spoke – a bit – German. No chance to make business…
If you want to make business in Germany (and we are counting over 500 insurance companies with a quite low degree of digitization) keep those few points in mind. It might be stressy to follow them – but I can promise you a lot of business opportunities. Use the help of experienced company builders and investors such as Kobi & InsurTechIsrael for example to get prepared. It will be worth it. Good luck!
Dr. Moritz Finkelnburg
Boardmember at BGV Insurance Group / Germany
Founder of Global InsurTech Roadshow
Academic Director at Goethe Business School / Frankfurt