Swisscom Ventures into Insurance: How Expansion May Bring Benefits and Challenges.
Swisscom, a telecommunications group, is expanding its business horizons by launching its new venture “Swisscom sure” that offers insurance services to customers. The company has now become an IT service provider and an insurance broker. Swisscom sure provides liability, travel, motor vehicle, and pet insurance among others through cooperation partners such as Zurich and ERV.
Dirk Wierzbitzki, head of the private customers department, explained that Swisscom will not be the primary insurer but will act as an intermediary for insurance products. The company aims to provide customers with simplicity, clarity, and flexibility in their insurance coverage. This move into insurance is seen as a strategic business decision for Swisscom as it aligns with its goal of providing comprehensive services to its customers.
The expansion of Swisscom into the insurance industry may raise concerns about competition and market distortions. However, the company is positioning itself as a digitalization partner in Switzerland. The federal government, being the majority owner of Swisscom, has supported its growth strategy despite some calls for privatization to address issues of competition and market fairness. As Swisscom continues to diversify its offerings, it will be interesting to see how the insurance sector fits into its overall business model and strategic objectives.
Swisscom’s expansion into new business areas is not without risk but also brings potential benefits such as increased revenue streams and improved customer satisfaction. With the launch of Sw
