On-Demand test drive insurance

In 2015 AutoScout24, one of Europe’s largest internet car marketplaces, was looking for ways to improve their users’ experience when buying a car from a private seller. During the discussions between AutoScout24 and KASKO it soon became apparent that test drive insurance for private sellers might fit the bill.

In Germany, the policy for car insurance usually applies to specified drivers by the insured party. In the case of a potential buyer test driving the seller’s car, this drive is normally not covered and in case of an accident, the seller faces punitive actions by the insurer due to misrepresentation under the insurance policy.

By creating an insurance cover that shields the seller from financial loss incurred due to a non-named driver having an accident, AutoScout24 could increase trust in their marketplace.

KASKO supported this project from product design to launch including finding the right insurer to underwrite the risk. At the time, Barmenia, one of the largest independent insurance groups in Germany, saw the opportunity of offering such a novel insurance at the point of demand.

KASKO was only two months old when they sat together with the business development team at AutoScout24 in February 2015. The concept of test drive insurance for private sellers was discussed and it fit AutoScout24’s strategy of brining new value propositions to market quickly, in order to test them in a real customer setting.

KASKO quickly sketched out the insurance product requirements as well as user experience from scratch and engaged with several insurers about underwriting the risk.

Barmenia was the most attractive partner because they were willing and able to provide wording and pricing and as well pragmatic about using KASKO’s middle layer rather than directly integrating into the insurer’s core systems.

Pricing & Wording

The main hurdle for the insurer was to price the new insurance product with very little historical data, as well as to create policy wording that would supplement the existing car insurance of the seller. KASKO supported this through extensive market research of possible proxy products in both Germany and the UK.

User Experience

Whilst the purchase flow of the product was quite simple, KASKO had to find a pragmatic way to account for the fact that buying and using the insurance would most likely not happen at the same time. Thus, KASKO created a simple activation workflow, allowing the insurance to be triggered through a link in the confirmation email, just before the start of the test drive.

Technical Integration

Barmenia’s core systems could not support the flexibility required in the user experience in a cost-effective and timely manner. Thus using KASKO’s flexible product platform for quote, offer, binding, policy issuance and payment allowed for a quick go to market.

Design new product

1. Digital Channel:

  • The seller finds a functional banner about test drive insurance whilst managing his classified or in case of a potential buyer requesting a test drive.
  • Following this link the user is forwarded to a specific AS24 landing page where the user is asked about their current insurance cover and duration.

2. Quote, offer, binding

  • a. The user is then forwarded to KASKO’s webapp where they receive a quote based on the risk modules and duration selected.
  • After providing licence plate, name and email and agreeing to the legal opt-ins the user can buy the insurance via credit card or PayPal.
  • a. The insurance is legally bound in real-time.

3. Policy issuance:

  • The customer then receives the insurance documents via email in real-time.

4. Activation:

  • a. The customer can then activate their insurance, either directly after purchasing or at a later date (just before the test drive) via a link in the confirmation email.

5. Policy-Admin:

  • All the policy data is stored in KASKO’s proprietary policy centre, which Barmenia’s customer support and claims team can access for information in real-time.
  • The connection between insurer systems and KASKO’s platform is done via a master policy which is identified through a static certificate ID from which the policy centre can then be accessed.

Test Drive insurance is now an integral part of AutoScout24’s customer journey. Moreover, Barmenia generated significant press coverage and won the prestigious “Innovationspreis der Versicherungswirtschaft” [Innovation Award of the German Insurance Industry] issued by Morgen & Morgen and German insurance publication “Versicherungswirtschaft” in September 2016.

More importantly, as of April 2017, this initial product led to three further insurance product integrations on AS24 and three successful products with Barmenia with several others in the pipeline.


“We are constantly looking for new and innovative ways to reach customers and to provide tailored services at the point of need. KASKO has proven to be a partner, who has made it easy for us to turn ideas into reality and we are looking forward to continuing working together to create further value for our customers.”
Frank Lamsfuss, Board member, Barmenia DE

“We always strive towards matching traditional insurance products with evolving digital customer needs. KASKO’s agile product platform coupled with their deep understanding of insurance product development allowed us to create a test drive product which was perfect for a huge car classified website and could then even be deployed on our own site very quickly.”
Michael Gross, Head of Productmanagement P&C, Barmenia DE

“We are always looking for ways to create value for our customer and increase trust in our platform.  Insurance services are certainly one important element of increasing trust along the online car purchase process. With KASKO we have a partner that understands execution and iteration and significantly increases our flexibility to offer relevant insurance products to our customers.”
Robert Martignoni, Head of New Initiatives at AutoScout24

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