Munich Re invests $ 250m more in Next Insurance
This investment emphasises Munich Re’s commitment to be the leading provider of digital insurance solutions. It also helps Munich Re expand its footprint in the promising insurance market for small and medium-sized commercial customers in the United States. We are confident that building on our proven collaboration will benefit both Munich Re and Next Insurance,”Joachim Wenning, chairman, Munich Re
Munich Re, the second largest global reinsurer,has increased its stake in Next Insurance by investing an additional US$ 250m in the Californian Start-up. Upon completion of the transaction, Next’s value will increase to slightly above US$ 1bn.
This investment deepens Munich Re’s partnership with Next Insurance. Digital Partners, a Munich Re business unit, has worked closely with the start-up since 2016, supplying services and assuming risk. Munich Re has also held shares in Next Insurance through its Munich Re Ventures unit for some time. With the newly acquired shares, Munich Re now owns around 27.5% of the company.
Next Insurance is a Californian start-up offering tailored, digital insurance solutions to small and medium-sized enterprises (SMEs) in the US market. A premium volume of US$ 139bn makes the US insurance market for SMEs very appealing.
Next’s data- and technology-driven business model offers outstanding growth opportunities, which we will harness together. Next Insurance will benefit from our expertise in primary insurance and reinsurance ,”said Joachim Wenning, chairman, Munich Re.
Meanwhile,FRISS, the market leader in AI-powered fraud and risk solutions for the P&C insurance industry, today announced to have extended their partnership with Munich Re, one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions, to now globally support insurers in their fight against fraud.
Extension of the contract follows on the successful cooperation in Latin America and Iberia, where both parties work extensively together to fight fraud and mitigate risks at P&C insurers. The parties now agree to support insurance companies worldwide.
Munich Re’s Global Consulting Unit is driving transformative change in the insurance industry through the application of data science and digitalization. The unique FRISS solutions provide a fully integrated hybrid combination of powerful AI, predictive models, network analysis, and text mining and over 600 out-of-the-box risk and fraud indicators, that are used by insurers for real-time risk assessment at underwriting, fraud detection at claims and investigations at the special investigation unit. These will be part of Munich Re’s consultative portfolio to bring value to the customer besides traditional reinsurance services.
Munich Re and FRISS will combine industry best practices and come up with practical solutions to help develop and improve business. Insurers will benefit from more efficient operations and fast-track customer service, which increases the customer satisfaction and experience.
Joachim Mathe, Head of Munich Re’s Global Consulting, says: ”Many of our insurance clients see the need to increase efficiencies, reduce claims costs and improve their competitive edge by an increased use of automation. To take full advantage of these new opportunities, insurers must arm themselves with relevant digital and data analytics competency including a modern IT system supporting such competences. The combination of our strategy expertise and global player know-how with AI-powered fraud and risk solutions provided by FRISS, will help our clients make effective big picture decisions.”
Ariane Braam-Verkoren, SVP Global Alliances at FRISS, says: “Together with Munich Re we can enable the digital transformation of our clients even better. We will globally work on making insurance more honest.”