LONDON, 18 December 2000 -- World reinsurance market leaders Munich Re and Swiss Re have agreed to co- operate on the launch of the independent reinsurance exchange inreon – insurance meets reinsurance online.
The two reinsurers have formed this new company together with Internet Capital Group, the US based Internet holding company with in-depth expertise in building B2B-companies, and Accenture,, which will change it’s name to Accenture on 01.01.01.
inreon provides insurance companies, brokers and professional reinsurers with transaction capabilities for standardised reinsurance covers. Risks are traded within pre-defined processes and within pre-agreed timeframes. Applying the most powerful Internet technology available today, inreon provides market participants with immediate and comfortable access to current and new business partners. The Internet-based reinsurance exchange offers participants a reliable, transparent, fast and cost effective way to transfer risk.
inreon is open to insurance companies and registered reinsurance brokers who are ready for the Internet as well as to professional reinsurance companies and groups. By registering as members of inreon, participants agree to the rules and regulations for the use of the inreon exchange, as well as to standardised inreon terms and conditions for each product traded. Founding partners Munich Re, including its US subsidiary American Re, and Swiss Re will offer capacity on the exchange as will the first registered member PartnerRe. Registration processes with several additional reinsurers are expected to be completed in the near future.
The inreon exchange, which was launched today, is fully operational with marketing and customer service; support is in place to manage and support assist usage. , inreon will initially concentrate on facultative non-proportional property business in the US, UK, France, Germany, Netherlands, Italy, Belgium and Spain. The cover comprises fire, extended coverage and / or all risk with business interruption following physical damage. In the near future inreon will integrate facultative proportional covers for property, proportional and non-proportional covers for casualty and other lines of business.
inreon is located in London, UK, and has an independent management team headed by Rob Bredahl, who has been appointed as interim CEO. Co-chairmen will be Clement Booth of Munich Re and Christian Speiser of Swiss Re.
inreon holds a capital of USD 37.5 m which is shared by the founding partners as follows: Munich Re 25%, Swiss Re 25%, Internet Capital Group 25% and Accenture 5%. inreon expects to attract additional reinsurers as shareholders, which will reduce the shareholding of the 25%-shareholders. The remaining 20% have been reserved for the management and to invite insurance companies as additional shareholders.
Originally founded as a pure reinsurer, Munich Re is on the way to becoming one of the world’s leading providers of financial services. In reinsurance, Munich Re currently services more than 5,000 companies in around 150 countries. In primary insurance, the Munich Re Group concentrates on personal lines business and insurance for small and medium-sized firms. In asset management - through its newly formed asset management vehicle MEAG - Munich Re is developing investments for institutional and private investors as well as for its own companies. In 1999, Munich Re Group premium income was EUR 27.4bn and the result after tax was EUR 1,133m. Ratings: Moody’s: "Aaa"; Standard and Poor’s: AAA; A.M. Best "A++"
Swiss Re is one of the world’s leading reinsurers with over 70 offices in more than 30 countries. In the 1999 financial year, gross premium volume amounted to CHF 22.4 billion and the result after tax amounted to CHF 2.8 billion. Swiss Re is rated “Aaa” by Moody’s, “AAA” by Standard and Poor’s and “A++” by A.M. Best.
Internet Capital Group (http://www.internetcapital.com) is an Internet company actively engaged in business-to-business e-commerce through a network of partner companies. It provides operational assistance, capital support, industry expertise, and a strategic network of business relationships intended to maximise the long-term market potential of more than 70 business-to-business e-commerce companies. Headquartered in Wayne, Pa., Internet Capital Group has offices in San Francisco, Boston, London, Munich, Paris, Tokyo and Hong Kong.