Mehrwerk and bolttech have unveiled a strategic alliance to enhance their joint provision of embedded insurance and ancillary services, starting with Germany before planning for broader international growth.
Combining Mehrwerk’s German-based data-driven B2B2C platform, which includes cashback and lifestyle protection services, with bolttech’s embedded insurance expertise from Singapore, the partnership aims to serve financial institutions, retailers, and utilities companies looking to integrate extra services into their customer offerings.
Bundled Services for Retail Banking
The collaboration particularly targets retail banking. According to consumer research by bolttech, over 70% of German consumers are keen on receiving insurance and additional services bundled with their bank accounts. This statistic supports the argument for premium-priced account tiers that include these benefits.
The intended service package features travel insurance with access to airport lounges in case of flight delays, cyber security protection, purchase protection, and cashback funded by affiliate merchant revenues. These services would be delivered in real time, leveraging actual banking transaction data to customize the offerings for individual consumer behavior.
Mehrwerk brings a robust distribution network to the partnership, with access to over 17 million households annually, serving more than six million active users. The company currently collaborates with over 250 B2B partners in banking, utilities, and insurance through a fully performance-based business model where partners pay only for measurable results.
Internal data from Mehrwerk suggests that integrating additional services into financial products can increase customer satisfaction by 450% and reduce churn rates up to 75%, while generating an extra EUR 50 in revenue per customer annually. These figures bolster the commercial case being presented to potential distribution partners.
Cross-Selling and Market Expansion
Beyond jointly acquiring new distribution partners, the agreement allows each company to cross-sell complementary products to the other’s existing network of partners. Germany is currently the focal market, with both parties committed to expanding the collaboration into additional territories over time.
The partnership mirrors a broader trend in financial services towards Embedded Finance, where non-core products like insurance and loyalty programs are integrated directly into banking and retail platforms. For retail banks specifically, this approach provides a means to differentiate current account offerings and generate subscription-based revenue with minimal product development investment.
bolttech’s operations in EMEA and Mehrwerk’s expansive European network of over 350 employees across ten locations in nine countries position the partnership well for scaling the model into further markets as collaboration deepens.
