How does a young startup manage to gain a foothold in the rather closed insurance industry? Firstly, with a relevant idea or product and a convincing team. Secondly, with the help of a competent partner like Insurtech Hub Munich (ITHM). We asked what the ITHM does exactly and how you can get in touch with them.
Please introduce yourselves briefly.
People first: We currently have seven permanent team members and are located in one of Munich's most exciting locations, the Werksviertel district near Munich's Ostbahnhof station. You can't get more Berlin than this in Munich... From our office window, we have a direct view of the new Ferris wheel, and during every lunch break, we discover new startups, new shops, and new faces that are transforming the emerging district. This is certainly one of the reasons why we often hold meetings with the ambassadors and board members from our partner companies here on site—change often begins with stepping outside of your usual environment. And we've discovered some freelancers one floor below in the Werk1 coworking space.
As one of the twelve digital hubs, the Insurtech Hub (ITHM) The association is supported and financed by the Free State of Bavaria and the Federal Ministry of Economics, as well as by its partner companies. The majority of our partners come from the insurance industry: large corporations such as Munich Re, Allianz, and Generali are represented, as are regional champions such as the Bavarian Insurance Association and the Munich Association. At the same time, we also have members from other industries, including Roche, PWC, and NTT DATA, and we explicitly see ourselves as a cross-sector ecosystem.
Wanted: Disruptive approaches for the insurance industry
Our ideal is to find startups that, at first glance, seem to have nothing to do with insurance—and that, precisely for this reason, could offer disruptive approaches to the insurance industry. Since digitalization now allows for easily implementable ideas to come from early-stage companies, we have designed an accelerator program specifically for this target group: the 'W1 Forward Insurtech Accelerator'. Here, we offer eight weeks of exchange with our members and teach the startups everything they need to know to gain a foothold in the insurance industry.
What do you focus on when working with startups?
'Ideas are cheap — it's all about the people': We take this mantra of the startup scene very seriously. We connect people from a very conservative industry with people who often think, work, and present themselves completely differently, even outside of accelerator programs. It's important to us to be close to both sides and to fulfill our role as bridge builders and often also translators. This includes supporting startups in preparing their pitches and with other communication measures. In the recently completed 2019 accelerator, we received a lot of positive feedback on our truly intensive pitch training and the ongoing exchange with our entrepreneurs-in-residence — the Demo Day showed that this paid off.
To be successful, a startup must…
...consist of a good team, with complementary personalities and skills. A team that can sometimes fall flat on its face and then get back up again. And importantly, it's open to feedback from all sides.
Insurtech Hub Munich as a door opener for a rather closed industry
Why does a good startup even need an accelerator program like W1 Forward—a program initiated by you?
For one thing, we open doors to decision-makers in an industry that's otherwise rather secretive. This year, we had over 160 applicants for W1 Forward, from which we selected ten teams. Those who make it into the program are guaranteed the attention of our corporate partners. And without them, in an industry where everything revolves around high risks and their coverage, it's often simply not possible.
Secondly, we ensure that everyone involved leaves the accelerator with a steep learning curve. Since this is an early-stage program, we teach important fundamentals such as business modeling, company formation, tax fundamentals, and even things like pitch training or coaching from experienced entrepreneurs, which the often young founders would otherwise have little access to.
What is the biggest mistake a startup can make?
Building a product without having found market relevance—that is, product-market fit. Since many founders know that even a customer's prototype isn't enough, they conduct numerous customer interviews and customer-focused iterations.
What characteristics make the Munich startup scene so special?
Munich's economic power combined with its village-like character is familiar to many. And the headquarters of major insurers, as well as Siemens, BMW, and others, are rarely more than a few subway stops apart. All of this combined creates a unique environment for startups. ITHM, Mobility Hub, Medialab, UnternehmerTUM, and Impact Hub are just a few of the numerous contact points offering support and networking opportunities.
Last but not least: Who do startups approach when they want to talk to you?
Ask us anything, any one of us – feel free to come and talk to us in person at one of our numerous events, such as our meetups. Otherwise: Community Manager Corine Ackermann is a good first contact with ITHM.
