MUNICH (dpa-AFX) - The ADAC is expanding its insurance business further beyond the car: In a specially founded joint venture with Allianz, the ADAC now sells a household contents insurance policy as well as a cover letter based on breakdown assistance for motorists. Both offers are also aimed at non-members. This was announced at the launch by ADAC SE, the commercial arm of the automobile club.

However, the business model is primarily based on the assumption that the ADAC membership could also be won over for offers beyond driving: "ADAC members live in a large proportion of the 41 million households in Germany, who already appreciate our services from mobility," said Sascha Herwig, CEO of the newly founded ADAC Zuhause Versicherung AG, according to the press release. Similar to car breakdown assistance, the new company will send tradesmen and other helpers to customers' homes in the event of an emergency call.

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

Many experts assume that motorized private transport will not continue to grow in the coming decades, or could even decline. The new offer is part of a "future-oriented diversification strategy", as stated in the press release. ADAC is responsible for product development, marketing and sales for the two joint ventures, while Allianz is responsible for risk calculation, finance and claims settlement, among other things.

Allianz also expects benefits: "Our first joint venture, ADAC Autoversicherung, already has more than one million customers," said Frank Sommerfeld, head of Allianz Versicherungs-AG, the property insurance division of the Munich-based Dax group in its German home market. The products and services for the home developed together with ADAC are intended to attract further customers./cho/DP/men