Allfinanz and Munich Re announce global relationship
Allfinanz and Munich Re have announced that they have concluded a global marketing and co-operation agreement with a view to providing life insurers with leading edge technology and underwriting rules that will help them process their life and health new
Allfinanz supplied the underwriting automation technology implemented so successfully at Metropolitan recently.
This venture brings together the Allfinanz' underwriting automation technology, which can now be underpinned with Munich Res expert underwriting rules. With attrition rates for new business applications of up to 25%, the partnership offering aims to significantly improve both the client and adviser experience by automating underwriting decisions in up to 70% of applications at point of sale.
Commenting on the venture in Johannesburg, Alby van Wyk, Head of Business Development of Allfinanz says:
"We are delighted to have joined forces with Munich Re to enhance our proposition and provide a leading edge solution to an industry issue. Research we recently conducted with 18 insurers and reinsurers in various markets, including South Africa, found that all expect straight-through-processing rates in excess of 50% to be achieved as an average across all protection lines. Our survey found further that there is still a gap between the actual straight through rates achieved and the potential that can be achieved. Combining our technology expertise with Munich Re's risk management excellence creates a compelling proposition that can address this gap. The benefits that flow from linking up with Munich Re's team and underwriting rules will enable insurers to transform their new business process and secure ongoing competitive advantage in a highly competitive market place. "
Nico Conradie, Member of Executive Management at Munich Re Africa says,
"We have long recognised that the efficient processing of new business is the new battleground for protection business. Key to achieving high rates of auto-acceptance using electronic underwriting systems are superior underwriting rules. We are therefore joining forces with the market leading new business processing system and are underpinning this with our expert underwriting rules to give a best of breed offering for the market. In addition to increased efficiencies, insurers can expect more in-depth analysis of their business profile from a team of experts that continuously feeds the improvement cycle. This not only leads to continued enhancements in the underwriting rules to increase auto acceptance rates but provides feedback across many measures ultimately improving the profitability of an insurers portfolio and thereby impacting on the insurer's bottom line. Allfinanz's rules designer allows for the most sophisticated decisions to be made and can handle combinations of disclosures just like a human underwriter. We feel that we can leverage this capability to create the best STP rates available in the market which will provide significant competitive advantage to our customers."
