Allfinanz and Munich Re have announced that they have concluded a global marketing and co-operation agreement with a view to providing protection insurers with leading edge technology and underwriting rules that will help them process their new business more efficiently.
The venture brings together the Allfinanz underwriting automation suite which can now be underpinned with Munich Re's 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 up to 80% of applications at the point of sale.
Commenting on the venture, David Wall, Chief Executive 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 from our user community shows that there is still a gap between the actual rates of straight through processing currently achieved and the potential that could 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."
Andrew Francis, Director of Client Management at Munich Re comments: "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 have therefore taken the market leading system and underpinned 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 imppacting on the insurers 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."