Case study from February 2020
Deutsche Kautionskasse AG was the first InsurTech company in Germany to offer both tenants and landlords an alternative to cash deposits, bank guarantees and expensive credit solutions with Moneyfix® Mietkaution. Since 2010, more than 170,000 surety certificates with an insured sum of around EUR 245 million have been issued through direct online sales. The underwriting agent is the market leader in this segment - with just 18 employees.
The challenge
With the Moneyfix® rental guarantee, Deutsche Kautionskasse AG processes a large number of applications with comparatively little manpower. What counts in underwriting is the potential success of recourse against the policyholder or tenant in the event of a claim. In view of Deutsche Kautionskasse's compact underwriting department, this risk assessment is mainly carried out automatically. For this purpose, a partner was sought who could provide valid, selective data in real time as a basis for decision-making.
The aim of Deutsche Kautionskasse was and is to obtain a reliable basis for decision-making based on real-time risk assessment. This should enable more efficient risk minimization and management in order to continue to grow profitably.
Deutsche Kautionskasse obtains SCHUFA information with a score. For any scoring, it is essential to first clearly identify the potential contract holder. The more data is available, the more reliable the identification and credit assessment. As Germany's leading provider of credit and information services for companies and consumers, SCHUFA has a database with credit-relevant information on 67.7 million people.
A calculated score value is based on the data stored about a person at SCHUFA - contract information and information on payment defaults - the basis for a differentiated acceptance policy of Deutsche Kautionskasse. In addition to the SCHUFA scoring as a basis for the decision, the amount of the deposit, the period of time between the application and the start of the tenancy, other tenants in the tenancy agreement or the age of the tenants have an influence on the acceptance or rejection of the application by Deutsche Kautionskasse.
By accepting applicants up to a high risk level, Deutsche Kautionskasse achieves an above-average recourse success rate and can therefore write significantly more business.
Thanks to the digital information, Deutsche Kautionskasse can make decisions even faster and on a broad data basis. Thanks to SCHUFA's valid risk assessment, Deutsche Kautionskasse is also prepared for growing competition and possible expansion of its business area.
Outlook
In order to benefit from an even more differentiated assessment and to minimize the risk in a targeted manner while fully exploiting the potential for new customers, an individual score card can also be developed as part of the SCHUFA partnership. Special requirements apply to business with commercial tenants and rental deposits, which require B2B information. If required, SCHUFA can combine information on over 6 million German companies with information from the SCHUFA personal database and thus provide meaningful information for owner-managed small companies in particular.
Fully digital information
Precise forecasts
Quick decisions
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