The world’s two largest reinsurers, Munich Re and Swiss Re, whose combined premiums total over $25 billion, have teamed up with Internet Capital Group, a leading B2B provider, and Andersen Consulting to launch “inreon,” an on-line platform for standard reinsurance covers.
The name stands for “insurance meets reinsurance online” and aims to provide “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.”
Swiss Re, Munich Re and ICG each have a 25 percent stake in the venture, with an initial capital of $37.5 million. Andersen holds 5 percent, and the remaining 20 percent is reserved for management shares, and for insurers who may be interested in participating. The three 25 percent stakeholders also anticipate reducing their holdings through sales to other reinsurers.
Based in London under independent management with co-chairmen from Swiss Re and Munich Re, inreon plans to concentrate initially 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,” said the announcement. “In the future inreon will integrate facultative proportional covers for property, proportional and non-proportional covers for casualty and other lines of business.”
The capacity will be initially provided by the two founding companies, along with PartnerRe, inreon’s first registered member. Others are expected to join the venture in the near future.
“Inreon is open to insurance companies and registered reinsurance brokers who are ready for the internet as well as professional reinsurance companies and groups,” said the announcement.
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