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02/12/2020

Munich, December 2nd, 2020. The IT consulting company msg has established a new company for insurance solutions: Legacy Portfolio Partners GmbH (LPP). LPP will develop sustainable and innovative solutions for primary insurers when dealing with legacy insurance portfolios. The company will be managed by Alexander Martin-Boes and Dr. Ralph Altenburger, two experienced experts for new, digital business models in the insurance sector. msg is thus supporting the industry in its efforts to further digitize. An exclusive partnership with the reinsurer Swiss Re provides insurers with an integrated service offering. This consists of the actuarial risk partnership, cost efficiencies and state of the art operations as well as proven migration expertise. On the market, the new company acts as an insurance intermediary and underwriting agent.

LPP solves legacy portfolio challenges of primary insurers

Many insurance companies face the challenge of administering legacy portfolios with outdated IT infrastructures. LPP's new solutions relives primary insurers of the burden of managing legacy portfolios by revitalizing these so that they can be continued on a profitable basis. Unlike conventional run-off solutions, LPP targets on “active portfolios” and avoids the complexity of (legal) portfolio transfers. The customer relationship with the previous insurer is thus maintained.

LPP migrates the legacy data to msg’s own msg.Insurance Suite platform. With a systematic approach, customers with old tariffs continue to be efficiently managed by LPP, without increasing costs, or can be transferred to new tariffs. The new company thus assumes all the tasks of an insurance intermediary, but with extended powers, for example in claims settlement. As LPP acts as a service provider for insurers, LPP does not behave like a competitor to the existing sales organization.

Integrated overall solution in cooperation with Swiss Re

Thanks to an exclusive partnership with Swiss Re, the companies can jointly offer an integrated overall solution for primary insurers. While LPP reduces the operational overhead of the primary insurers, Swiss Re is responsible for assuming the actuarial risk including a reduction in costs. Dr. Jürgen Zehetmaier, member of the msg executive board, says: “LPP in cooperation with Swiss Re perfectly complements msg’s strategy and service offering. After all, our aim is to create a holistic offer for primary insurers that helps them get on the path to digitization and to position themselves against new competitors in the long term.”

 “Our customers face fundamental changes and the challenges of digitization, which are increased during this Corona pandemic. Legacy portfolios are a significant obstacle to a sustainable strategic realignment. Swiss Re’s aim is to provide its customers with holistic support. LPP's integrated offering fits this perfectly,” explains Dr. Peter Liebwein from Swiss Re.