Zurich Germany Increases Customer Flow, Binds Marketers, Expects 20 Percent Lower Admin Costs

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Zurich Germany Increases Customer Flow, Binds Marketers, Expects 20 Percent Lower Admin Costs www.munichre.com/automation-solutions

When a top German life insurance firm foresaw the pinch of growing competition, a careful selection process began for automated underwriting solutions. Zurich Germany chose the reputation and deliverables of Munich Re’s suite of ALLFINANZ underwriting software and consulting. Today, customer sign-ups are rising, “This software-service combination was chosen marketing allies are enthusiastic, and projections see for its proven integration admin costs dropping 20 percent over five years. of best-in-class software, profound underwriting Zurich Life Germany sells its life know-how, and easy The company and disability protection through evolution to market changes. Serving Germany since 1875, Zurich employed staff, commissioned Munich Re also furthers Group in Germany (www.zurich.de) advisers and partnerships such as its and enhances our historic is among Germany’s top ten insurers. strong marketing presence through concern with customer Zurich insures 27 of the 30 DAX Deutsche Bank. All sales channels privacy and protecting our (Germany’s blue chip stock market are now, or soon will be, using customers’ personal medical index) companies and is the official the ALLFINANZ New Business & Underwriting software suite. information.” insurer of the German Olympic team. In 2013, its 5,600 employees generated premiums exceeding €5,9 Evolving business realities Dr. Christian Kirsch billion. In life insurance, Zurich is one Chief Underwriting Officer of the top five most successful life, Upon joining Zurich Germany in 2011, Zurich Life Germany ability (often termed “disability”) and Marcus Nagel, CEO Global Life, saw income protection companies. that only end-to-end automation would streamline applications, help Parent company Zurich Insurance sell more protection, reduce data Group Ltd. (Zurich) is Switzerland’s input hours, and raise the accuracy of largest insurer. In 2013, it ranked applications and underwriting. as the world’s 75th largest public company. Zurich employs 60,000, He foresaw that a faster, smoother serves more than 170 countries, and and highly reportable application boasts shareholder equity of $34.494 process would strengthen their billon. It earns top evaluations from adviser, broker and Deutsche Bank Moody’s, Best, and Standard and loyalties. Poor’s. Zurich Germany Increases Customer Flow, Page 2/4 www.munichre.com/automation-solutions Binds Marketers, Expects 20 Percent Lower Admin Costs

Zurich Germany processes were Implementation and rollout “We are happy to have then a carefully worked out series chosen Munich Re. Without of manual, but task-intensive, Kirsch says, “Munich Re completed this powerful system of paper-based steps with very little our project on time, in spec, on automation. Each sales arm created ALLFINANZ software and scope and in budget. Technical paper applications simply by asking Munich Re consulting implementation took nine months questions and writing answers. for term insurance and income services, we couldn’t reach Accuracy suffered. Not all advisers protection. Our teams maintain and and retain a leadership were comfortable asking personal evolve the ALLFINANZ system.” position. The ALLFINANZ health questions. Some customers solution is a bull’s-eye to weren’t candid. Zurich Germany is using: implement this strategy.” • ALLFINANZ Interview Server (AIS), At point of sale (POS), no the underwriting rules engine differentiation was possible between • ALLFINANZ preconfigured German applications to be immediately underwriting rule book processed, those needing a quick review and a few answers, versus ALLFINANZ Business Analytics those requiring medical appointments software will soon increase reporting and special underwriting. visibility by drilling down on specific questions to tighten underwriting The company actively sought consistency. solutions. One reinsurer’s offering proved incompatible with existing The pilot phase for life and basic IT systems. Parent Zurich Insurance ability insurance launched on 1st Group began to study the field, October 2013 to brokers and tied searching for a company-wide agents with this announcement: solution for international rollout. Comparison studies selected the “We’re pleased to announce the unique combination of Munich Re’s delivery of an integrated expert powerful underwriting technology underwriting system, ALLFINANZ platform (ALLFINANZ) and its Interview Server (AIS), into our extensive risk management and strategic front-end system in underwriting rules expertise. Munich Germany. This is a great example of Re’s rules consulting services are re-use of the Global Life common financed by a reinsurance contract expert underwriting engine from with Munich Re. Munich Re.”

Dr. Christian Kirsch, Chief Zurich Germany redesigned its front Underwriting Officer, Zurich Life end “to take advantage of the power Germany, explains, “Zurich didn’t in ALLFINANZ Interview Server.” decide by counting features. This software-service combination was Kirsch says, “Sales benefits reach chosen for its proven integration 2,000 mobile sales systems and of best-in-class software, profound all sales forces. The next rollout in underwriting know-how, and easy marketing will encompass broker evolution to market changes. Munich channels, then Deutsche Bank in Re also furthers and enhances our 2016. We are developing and refining historic concern with customer this system for application to our next privacy and protecting our customers’ product line.” personal medical information.” Zurich Germany Increases Customer Flow, Page 3/4 www.munichre.com/automation-solutions Binds Marketers, Expects 20 Percent Lower Admin Costs

Kirsch and Heike Hommel, Senior “I’m closing more contracts and we Development Analyst, have been project cutting our medical GP costs “I’m closing more contracts “delivering system orientation and by half, and overall administrative and we project cutting our training workshops on the benefits costs by 20 percent. We’re below medical GP costs by half, and of our new automation and how it industry averages in these expenses overall administrative costs should work in a well-run sales office. now and are still trimming.” by 20 percent. We’re below Sales forces learn the technology and industry averages in these realise the bottom-line benefits in Benefits spread from sales through saved hours, saved steps, and more underwriting and are showing up in expenses now and are still euros.” our bottom line. The user interface trimming.” makes a very professional impression Hommel adds, “In ten minutes, we and customers are more comfortable train sales staffs to use the new answering health questions on POS. Of course it takes longer to screen. Uniform data and automated Kirsch observes, “Without the system, implement all the benefits into each data entry standardise policy we wouldn’t be as competitive individual office routine. We see very management and underwriting. because no one will write on paper. eager implementation in our most The big broker pools and banks need ambitious and professionally run Hommel explains, “Every new time- streamlined processes. offices.” saving feature at our POS speeds customers’ sign-ups, which motivates Addressing back-office benefits, Zurich Germany plans ongoing sales offices, advisers and partners. Kirsch says, “We will always need modifications to underwriting New screens display doctors’ contact medical and special reports for rules based on input from information, so last year’s detour health conditions, risky occupations ALLFINANZ Business Analytics is now one click. Brokers say the and dangerous hobbies. Yet our big and broker feedback. Hommel says, new system ‘plugs the holes’ of advantage is that all our industry “Implementing rule changes in unanswered questions, and that and underwriting knowledge is now ALLFINANZ is very easy—10 to 15 minimises revisiting customers. blended into our initial questioning. minutes. It’s the pre-planning and thinking through the ‘what-ifs’ that She says, “We already see indications “We are certain our underwriting, consume time.” that sales levels, market share and from simple to complex cases, is straight-through processing are more accurate, streamlined and In early 2014, Zurich Germany trending upward. For uncomplicated uniform. This can only improve implemented application data cases, in 20 or 30 minutes, sales and as we compare the results of new transfer directly into its back-end underwriting are complete and the modifications to rules. We have close system, eliminating hundreds of customer is bound. We process the and excellent collaboration with hours of tedious keyboard time and paper within 24 hours. Stats show Munich Re. We mutually rely on each saving a foreseeable 20 percent our ‘not-proceeded-with’ (also known other—a true partnership. in combined administrative costs as not-taken-ups) are very low.” over five years. Electronic signature Kirsch adds, “End-to-end automation capability is imminent. Completely Kirsch adds, “Brokers tell us we even gives us mileage in public automated underwriting will come in have by far the best solution to help relations. Our CEO discusses its the future. them sell. I’ve heard it personally. benefits at seminars and I was We knew we were on the right track invited to discuss it at an industry Benefits in-hand and when a large broker pool encouraged conference!” imminent us to speed up rollout. Sales staff are eager; they get involved and Kirsch says, “We are happy to have contribute ideas.” chosen Munich Re. Without this powerful system of ALLFINANZ “While our insurance products are software and Munich Re rules usually superior to competitors’, consulting services, we couldn’t reach a hurried buyer won’t dig down to and retain a leadership position. The see that. They follow their adviser’s ALLFINANZ solution is a bull’s-eye to lead. So it is our job to bind advisers’ implement this strategy. loyalty by delivering easy, intuitive, and foolproof customer registration.” Zurich Germany Increases Customer Flow, Page 4/4 Binds Marketers, Expects 20 Percent Lower Admin Costs

Contact us About Zurich Zurich® is a major financial services group that was founded in 1872. Its Head office - Ireland headquarters are in Zurich, Switzerland. Today, the company employs 60,000 Munich Re Automation Solutions Ltd people. It serves customers in more than 170 countries. The company has offices Mountain View, Central Park, in the Americas, Africa, Europe, the Middle East and the Asia Pacific region. Leopardstown, Dublin 18, Ireland. Tel: + 353 1 293 2888 About Munich Re Automation Solutions Ltd Japan Munich Re Automation Solutions Ltd, a Munich Re subsidiary, is a leading Sanno Park Tower 13F, software provider of new business underwriting solutions for the life insurance PO Box 13, 2-11-1 Nagatacho, industry. For the past 27 years, we have transformed how life insurers are Chiyoda-ku, Tokyo 100-6113, Japan selling life insurance with next generation technology that gives our clients Tel: + 81 3 4550 1550 the power to grow their business profitably. ALLFINANZ is a suite of new business underwriting applications that make life insurance easy to sell and Australia help insurers transform underwriting into a profit driver. Headquartered in Level 8, 15 Blue Street, Ireland, we have offices in Japan, Singapore, Australia and the U.S. Our client North Sydney, NSW 2060, Australia base proudly include world leading insurance companies including Pacific Life, Tel: + 61 2 8404 9200 Guardian, Zurich, HSBC, Aviva, Sony Life, Metropolitan Life, Bank of China and Comminsure. USA 10 South Riverside Plaza, About Munich Re Chicago, Illinois, 60606, USA Munich Re stands for exceptional solution-based expertise, consistent risk Tel: + 1 312 474 6065 management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2013, the Singapore Group – which combines primary insurance and reinsurance under one roof – Level 11, achieved a profit of €3.3bn on premium income of over €51bn. It operates in all Marina Bay Financial Centre Tower 1, lines of insurance, with almost 45,000 employees throughout the world. With 8 Marina Boulevard, premium income of around €28bn from reinsurance alone, it is one of the Singapore 018981 world’s leading reinsurers. Especially when clients require solutions for complex Tel: +65 6232 2102 risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the major insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2013, ERGO posted premium income of €18bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to €209bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.