ADAC now sells insurance – also for non-members


Lerato Khumalo

The ADAC wants to be more than just a car club. The future of motorized individual transport is unclear. The company is therefore looking for new business areas.

The ADAC is expanding its insurance business beyond cars: in a specially founded joint venture with Allianz, the automobile club now sells home contents insurance and a breakdown assistance policy for drivers. Both offers are also aimed at non-members. This was announced by ADAC SE, the commercial branch of the automobile club, at the start of the business.

However, the business model is primarily based on the assumption that ADAC members can also be won over for services beyond driving: “ADAC members live in a large proportion of the 41 million households in Germany, and they already value our services in terms of mobility,” said Sascha Herwig, CEO of the newly founded ADAC Zuhause Versicherung AG, according to a statement. Similar to breakdown assistance in cars, the new company will send tradesmen and other helpers to the home when emergency calls are made by customers with insurance cover.

To date, the ADAC has been represented in the insurance business not only, but predominantly in areas related to cars, travel and tourism. These include travel cancellation and international health insurance. The ADAC has been cooperating with Allianz in a joint venture in car insurance since 2019. The second joint venture is now venturing into a new business area for the ADAC in the highly competitive German insurance market.

Many experts assume that private motorized transport will not grow any further in the coming decades, or could even decline. The new offer is part of a “forward-looking diversification strategy,” as the press release states. ADAC is responsible for product development, marketing and sales of the two joint ventures, while Allianz is responsible for risk calculation, finance and claims processing, among other things.

Allianz also expects advantages: “Our first joint venture, ADAC Autoversicherung, already has more than a million customers,” said Frank Sommerfeld, head of Allianz Versicherungs-AG, the property insurance division of the Munich-based DAX group in the German home market. The products and services for the home developed jointly with ADAC are intended to attract more customers.