The disruption in the insurance industry is about to reach the next level: Baloise will start selling coverage for avatars to e-gamers in Switzerland. With the new product, the company wants to gain experience in a booming new business.
The idea is as simple as it is logical: e-gamers can win prize money reaching millions of dollars and are building fortunes with their teams of avatars in the virtual world. And hence their desire to protect and insure these assets.
Baloise is now taking the lead in Switzerland in this fledgling market and has teamed up with German startup Insurninja, the companies said in a statement on Tuesday.
Protection for Avatars
Together they offer an insurance for e-gamers and e-sports athletes that protects their hardware and avatars against loss through a system breakdown.
The business idea may sound futuristic but has its merits: there are 1.5 million gamers in Switzerland who generate a turnover of about 600 million Swiss francs a year ($600 million). The global turnover is estimated at some 140 billion francs.
The Virtual World as a Mass Market
Gaming, e-sports and the virtual world clearly are future markets for the insurance industry, said Michael Mueller, head of Baloise Switzerland.
Being early in this business will help the company better exploit the opportunities in the long run, even if the revenue generated for the time being will be modest. Corsin Sulser, who is taking charge of the cooperation with Insurninja at Baloise, added that e-sports was the fastest growing sport.
Lively Swiss E-Sports Community
«The cooperation helps us get new points of contact and attention in an emerging customer segment,» said Sulser. «We know the target group from our own, long experience and know the gaming community’s needs. This is a strong unique selling point,» said Tim Schlawinsky, CEO and co-founder of Insurninja, in an interview with finews.ch.
He saw what he described as a lively and well established gaming community in Switzerland: «Under these conditions, we will become a partner for the Swiss community in terms of security and we will help our customers to safely act out their hobby or profession,» Schlawinsky added.
Only a Beginning
In May 2018, Baloise had launched an insurance for gaming gear in cooperation with UPC, the cable network provider. New synergies will develop through today’s announcement enabling the establishment of startups.
«Insurance is only a first step in the professional development of e-sports. Financial services are a logical next step. Baloise is a strong partner that helps us in our mission to provide the best products to gamers.
