Zurich launches embedded luggage protection

Vodafone Germany and Zurich Group Germany announced the launch of Luggage Protection, a purely digital short-term luggage coverage available to Vodafone mobile customers in Germany when traveling abroad.

Premium starts at €1.99 per day; charged by Vodafone as part of the phone bill. Coverage offered is initiated via an SMS and can be purchased via a smartphone for up to 14 days. In the event of theft, customers receive €500, and in the event of damage – the compensation is €150. Travelers can submit claims online and expect a turnaround of three working days.

Note that this isn’t the first partnership between Vodafone and Zurich as Zurich underwrites disability insurance for around 16,000 Vodafone employees .

And this is part of the insurer’s “growth strategy,” as it targets new business through strategic partnerships:

• In 2019, it partnered with MediaMarktSaturn Germany (MMSD) to offer extended warranties for electronics which saw Zurich attract around 4 million new customers.
• In 2020, Zurich partnered with automotive wholesaler Wessels & Müller WM SE to develop and distribute insurance offered exclusively to all WM full-service concept partners in Germany.

“Zurich is one of the leading insurers in property and casualty business for private customers, in life insurance, and in business with commercial and industrial customers. We want to strengthen our position in all segments and also expand our strategic partnerships. Through the partnership with Vodafone Germany and its around 30.7 million mobile phone contract customers, we are once again demonstrating our customer orientation and innovative strength .” – Jawed Barna, board member of Zurich Group Germany and responsible for strategic partnerships.

“The partnership with the Zurich Group Germany clearly shows how the digitization of an entire industry can work . Paperwork and long contract clauses are a thing of the past. Together we develop offers for millions of customers that can be completed quickly, easily, and fully digitally on the smartphone.” – Michael Reinartz, Director Innovation & Consumer Services at Vodafone Germany.

Bottom Line: According to Zurich, around 40% of customers would acquire insurance through their telecom provider, and Zurich is now entering this sector for the first time through Vodafone.