“Embedded insurance” is a modern concept that played an important role in the new collaboration with the brokermarket.ch platform. The principle: if a mortgage is taken out to finance your new home, this can now be insured via Würth Financial Services AG (WFS) when the contract is signed. The collaboration with the mortgage platform, which brings together nine l enders, began in the third quarter of 2023.
This is how it works. On the brokermarket.ch platform, mortgage brokers can search for the cheapest mortgages for property buyers. When you take out a mortgage for your dream home, you can also immediately arrange mortgage insurance on brokermarket.ch. The advantages: obtaining a quote is straightforward, the insurance quote is tailored to the individual mortgage and the WFS team takes care of the formalities. As a Product Innovation Consultant, Stefan Sollberger has driven the new service forward: “We have created a simple, straightforward insurance option. For example, the insurer covers the interest payments on your mortgage for a year so you can look for a new job without worrying.” After all, who wants to have to give up their much-loved house or their nice apartment with their family if they lose their job or fall ill for an extended period of time? The banks also benefit: they have a reduced risk of default thanks to the insurance cover.
An example of how the figures look: if you pay CHF 1,500 a month for your mortgage, you can insure it for around CHF 50 extra. “This decision, which takes place immediately on taking out the mortgage, is easy to make and an attractive proposition,” says Stefan. “Though this will not make insurance something to get excited about, protection against risk is nonetheless very important to many property owners.”
The idea of working with brokermarket.ch came about through contact with Thurgauer Kantonalbank. The WFS team was already familiar with the technical service provider, which is known for its interfaces and for its quick and easy process for taking out insurance. The team could therefore rely on proven expertise. “We have really created something new across the board – very straightforward, streamlined and efficient,” says Stefan. “However, we have had ideas about this kind of product for some time.”
“Switzerland is a country of mortgages and therefore offers an attractive place to do business.“
Stefan Sollberger, Product Innovation Consultant at Würth Financial Services AG
Working with Thurgauer Kantonalbank was a smooth process without any complications. The new service was launched in less than a year. The level of acceptance among mortgage brokers that use brokermarket.ch increases the more familiar they become with the service. Almost like a start-up, Stefan thinks: “We are all in the engine room, shovelling coal and pulling the right levers to move the project forward.”
Open finance: services growing together
The collaboration between WFS and brokermarket.ch picks up on a new trend in banking. Thanks to digitalisation, “open banking” allows banks to open themselves up to the services and functions of other providers – an opportunity with huge potential that should offer added value to existing clients. Mortgage insurance on brokermarket.ch is a first step. Work on further options is ongoing.
