ERGO and Californian start-up Fair to cooperate on digital automobile insurance solutions


Press Release, 18.01.2019

ERGO Mobility Solutions (EMS), the automotive and mobility arm of ERGO Group, and the Californian Car-as-a-Service start-up Fair have signed a cooperation agreement at the Consumer Electronics Show CES in Las Vegas. Both companies intend to expand the Santa Monica-based mobility provider's existing business model by adding digital car insurance modules.

Target regions are initially selected European markets and the USA, which are addressed via partnerships with Munich Re companies. Georg Bauer, co-founder and chairman of Fair: “We are very happy to be cooperating with ERGO Mobility, an experienced and highly skilled partner who will be bringing its expertise in motor insurance for the digital age to our cooperation. This gives our customers access to attractive, process-optimised car insurance solutions which fully comply with the Fair commitment to digital, totally paperless services provided through our app. The new cooperation enables us to expand Fair’s range of services by adding another core element to our ‘Car-as-a-Service’ philosophy.”

“The cooperation with Fair underscores the strategic alignment of ERGO Mobility Solutions as an innovative provider of mobility-based insurance solutions”, says Karsten Crede, board member of ERGO Digital Ventures AG responsible for ERGO Mobility Solutions. “With a consistent focus on delivering customer benefits, we will be contributing to Fair’s unique success story as a leading provider of Car-as-a-Service solutions.”

The partnership with EMS enables Fair to offer its customers a full and flexible choice of insurance products for mobility solutions with flexible terms, which is a highly innovative solution on the insurance market.

Fair’s subscription service uses an app to enable customers to get a car through their phone and use it for as long as they need. The Car-as-a-Service (CaaS) concept allows customers to choose a used car from over 40 brands. The monthly fee includes a warranty, maintenance and roadside assistance. As an alternative to conventional, long-term leasing contracts, Fair’s service meets the growing demand for greater flexibility.

ERGO contributed to Fair's recent Series B funding round of US $385 million led by SoftBank, marking the second investment of ERGO’s corporate venture fund. The €100m-fund was launched in 2018 and integrated into the investment activities of the Munich Re Group. Over the next five years, the fund will provide venture capital for start-ups and young companies.

“We believe that the mobility sector is a core business segment”, says Gregor Wiest, responsible for ERGO’s global investment activities. “It has experienced a disruptive development over the last few years and it is currently in the process of reinventing itself. We want to participate in this development. With our expertise in risk management, we can make a significant contribution to reducing total operating costs and creating the framework to make alternative insurance products for the mobility sector even more attractive.”

For further information, please contact:

Ronny Winkler

ERGO Group AG
Media Relations

Tel +49 211 477-3012
Fax +49 211 477-3113
ronny.winkler@ergo.de
media-relations@ergo.de

About the ERGO Group AG

ERGO is one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in over 30 countries and concentrates on Europe and Asia. Within the group, three entities manage domestic and international business, as well as digital and direct business (ERGO Deutschland, ERGO International and ERGO Digital Ventures). About 42,000 people work for the Group, either as salaried employees or as full-time self-employed sales representatives. In 2017, ERGO recorded a premium income of 19 billion euros and rendered benefits to customers of 18 billion euros. ERGO is part of Munich Re, one of the world's leading reinsurers and risk carriers.
More at www.ergo.com

About Fair

Fair offers a new way to get a car that responds to consumer demand for more freedom. Fair gives customers the flexibility to drive the car they want for as long as they want and lets them walk away any time, eliminating the long-term commitment of traditional financing or leasing. Fair allows you to select your car, miles and view your payments – all in a mobile and paperless end-to-end experience that’s simple, transparent and affordable. Fair is headquartered in Santa Monica, Calif., serves with its team of 350 employees over 20,000 customers and partners with 4,000 dealerships across the U.S.
More at www.fair.com

Disclaimer

This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Group. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.

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