A presentation recently held at the 28th East Asian Insurance Congress in Macau, showcasing new co-operation models with business partners on innovation.

1. 28th East Asian Insurance Congress
Reinsurers as Partners in Innovation
14 October 2016
Axel Fürderer
Head Business Development Greater China

2. Can a reinsurer be a strong partner for innovation ?
Reinsurers as Partners in Innovation
???
Which areas ? For whom ?What sort of
innovation ?
How ?
28th East Asian Insurance Congress / Axel Fürderer / Page 2
Where ? For what in return ?How quickly ? When ?
© AMF pictures

3. Now is the right time to innovate
Reinsurers as Partners in Innovation
Buyer demands,
behaviour &
accessibility
Business partners
seek support in
innovation
Innovation =
strategic
priority
New client
segments have
emerged
Need & urgency
is tangible
Technology is there
The race is on Amazing people
have joined the
industry
28th East Asian Insurance Congress / Axel Fürderer / Page 3
© AMF pictures

4. Major innovation trends impact the industry and
create opportunities and challenges for (re-)insurers…
Reinsurers as Partners in Innovation
Major Innovation Trends in (Re-)Insurance Opportunities and Challenges for (Re-)Insurers
Large amounts of previously not available data and
sophisticated analysis methods
(e.g. “Big Data”)
Digital market entrants (e.g. large internet players, Fintecs,
InsTecs) establishing new distribution channels, setting up own
insurance entities, (e.g. mutual, brokers, etc.)
Changing expectations and behavior of business partners
regarding product design, services and (digital) sales
Digitalization and new technologies (e.g. cyber, sensors,
drones, automated cars) with impact on the risk landscape
New exposures and risks (e.g. cyber, business interruption, reputation,
connected cars, sharing assets)
Bundle products linking insurance with prevention services
Reduced risks/loss frequency
New risks/loss frequency
Improved risk selection and pricing/rating
Long-term competitive advantage for data owners
Danger of anti-selection if data/methods not yet mastered
Efficient customer acquisition and improved retention through new
marketing and sales channels
New capabilities required to compete with current set-up
Opportunities for Corporate Partnering
Risk of disruption/disintermediation
Opportunities Challenges
28th East Asian Insurance Congress / Axel Fürderer / Page 4

5. Big picture on innovation
Reinsurers as Partners in Innovation
28th East Asian Insurance Congress / Axel Fürderer / Page 5
© Munich Re

6. Munich Re
Reinsurers as Partners in Innovation
How is Munich Re innovating ?
Sales
channels
Client demands
Product
design
Technology
010101010
000101010
101101010
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Supra-
nationals
Governments
Business
partners
Primary
insurance
companies
Insurance /
Reinsurance
Brokers
InsTec
start-ups
FinTec
start-ups
Internet
heavy
weights
Sharing
economy
Car
OEMs
Component
suppliers
Technology
companies
…..
R I S K S
Fast track delivery of new solutions
e.g. combining new products and
sales channels/technologies
Ideation
with a strong focus on the core business of
the business partner
Input
 Capital/resources for co-creation
 Investment (VC/M&A etc.)
 Reinsurance
Focus areas
28th East Asian Insurance Congress / Axel Fürderer / Page 6

7. Supra-
nationals
Governments
Innovation partners
Reinsurers as Partners in Innovation
Munich Re
internally
Business
partners
Primary
insurance
companies
Insurance /
Reinsurance
Brokers
InsTec
start-ups
FinTec
start-ups
Internet
heavy
weights
Sharing
economy
Car
OEMs
Component
suppliers
Technology
companies
Large amounts of previously not available
data and sophisticated analysis methods
(e.g. “Big Data”) Digital market entrants (e.g. large
internet players, Fintecs, Instecs)
establishing new distribution channels,
setting up own insurance entities, (e.g.
mutual, brokers, etc.)
Changing expectations and behavior of
business partners and their clients
regarding product design, services and
(digital) sales
Digitalization and new technologies
(e.g. cyber, sensors, drones,
automated cars) with impact on the
risk landscape
Assessment, prediction and modelling
of existing and future risks
(e.g. pandemics/epidemics)
…..
Innovation trends
28th East Asian Insurance Congress / Axel Fürderer / Page 7

8. Innovation labs
Innovation
Infrastructure
Innovation scouting
Ideation
Working with business partners
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
Corporate partnering
New (re-)insurance products
New business models
New clients and demands
New risk-related services
Data analytics
Agile IT
Collaboration
I
II
III  Munich Re staff
 Business partners
 Co-creation teams
 Project teams
 Scouting events
28th East Asian Insurance Congress / Axel Fürderer / Page 8
© Munich Re

9. Innovation
Infrastructure
Innovation scouting
Innovation labs
Ideation
Corporate partnering
Scouting for business partners
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
New (re-)insurance products
New business models
New clients and demands
New risk-related services
Data analytics
Agile IT
Collaboration
I
II
III
Innovation scouts are scouting trends, establishing networks:
 First reinsurer with permanent presence in Silicon Valley  Plug and Play Tech
Centre, where Munich Re is a founding partner in their insurance accelerator
 Munich Re is active in global innovation centers (London, Tel Aviv, Silicon Valley,
Berlin, Beijing, New York…)
 Access to relevant innovation ecosystems through partnerships with well-known
accelerators
28th East Asian Insurance Congress / Axel Fürderer / Page 9
© Munich Re of America

10. Innovation labs
Ideation
Innovation scouting
Corporate partnering
Innovation
Infrastructure
Inventing for business partners
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
New (re-)insurance products
New business models
New clients and demands
New risk-related services
Data analytics
Agile IT
Collaboration
I
II
III
 Innovation labs are providing an inspiring environment for ideation, rapid prototyping
and product/service development with business partners
 Business partners receive access to new product development methods
(e.g. design thinking)
28th East Asian Insurance Congress / Axel Fürderer / Page 10
© Munich Re

11. Corporate partnering
Innovation
Infrastructure
Co-operating with business partners
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
New (re-)insurance products
New business models
New clients and demands
New risk-related services
Data analytics
Agile IT
Collaboration
I
II
III
Innovation labs
Innovation scouting
Ideation
Corporate partnering:
Establishing partnerships with relevant players and business partners
Co-operation partners
on ideation/R&D/
product development/
joint market access
Strategic
co-operation
partners
Investment M&A
Business partners
Suppliers
Business partners
28th East Asian Insurance Congress / Axel Fürderer / Page 11

12. Collaboration
New (re-)insurance products
New business models
New clients and demands
New risk-related services
Innovation
Infrastructure
Innovation labs
Innovation scouting
Ideation
Corporate partnering
Supporting business partners
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
Data analytics
Agile IT
I
II
III
Time-to-market:
Munich Re as solution provider for insurance products and digital distribution
28th East Asian Insurance Congress / Axel Fürderer / Page 12
© Munich Re

13. Collaboration
New risk-related services
New (re-)insurance products
New business models
Innovation
Infrastructure
Innovation labs
Innovation scouting
Ideation
Corporate partnering
New products and digital distribution
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
New clients and demands
Data analytics
Agile IT
I
II
III
Cindy Renminby
 Primary insurance product sales channel
(“Book shelf concept”);
 Primary insurers can embed their own insurance
products (non-life, Life, Health) into Cindy Renminby;
 Munich Re also provides new primary insurance
products, developed for Cindy Renminby;
 Cindy Renminby utilizes social media
(WeChat) functions. Policy buyers can
invite friends and family members to
- contribute to insurance premium payments,
resulting in a higher sum insured
- down-negotiate the insurance premium;
 APP for IOS, Android;
 WeChat (social media);
 Direct online payment functions;
 Policy management functions;
 Concept and development by Munich Re,
co-operation with a broker;
 Will be offered as “plug & play solution” for primary
insurance companies;
 Direct connection to primary insurer’s IT interfaces.
28th East Asian Insurance Congress / Axel Fürderer / Page 13
© Munich Re

14. New (re-)insurance products
New business models
New clients and demands
New risk-related services
Innovation
Infrastructure
Innovation labs
Innovation scouting
Ideation
Corporate partnering
New products and digital distribution
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
Data analytics
Agile IT
Collaboration
I
II
III
Flexisafe
 Primary insurance product sales channel
(“Book shelf concept”);
 Munich Re has developed a new primary insurance
umbrella cover, including 5 non-life products for retail
clients;
 Sum insured can be adjusted at any time by the
policy holder within the corresponding premium amount;
 Top up coverage available;
 Social Media (WeChat) application;
 Direct online payment functions;
 Policy management functions;
 Concept and development by Munich Re;
 Will be offered as “plug & play solution” for primary
insurance companies;
 Munich Re has also developed 2 Flexisafe training videos:
- need for insurance
- scope and benefits of Flexisafe
for agent training and/or client education;
 Direct connection to primary insurer’s IT interfaces.
Video: need for
insurance
Video: scope and
benefits of Flexisafe
28th East Asian Insurance Congress / Axel Fürderer / Page 14
© Munich Re

15. Data analytics
Agile IT
Collaboration
New risk-related services
New (re-)insurance products
Innovation
Infrastructure
Innovation labs
Innovation scouting
Ideation
Corporate partnering
New products and risk assessment analytics
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
I
II
III
New business models
New clients and demands
Pandemics
 Development of new primary insurance solutions covering non-damage
business interruption losses triggered by pandemic events;
 Target segments: hospitality industry, airlines etc.;
 Partnership with Silicon Valley-based Metabiota extends Munich Re’s
toolbox by broadening historical database and monitoring breach of new
trigger definitions.
28th East Asian Insurance Congress / Axel Fürderer / Page 15
© Metabiota

16. New (re-)insurance products
New business models
New clients and demands
Data analytics
Agile IT
Collaboration
New risk-related services
Innovation
Infrastructure
Innovation labs
Innovation scouting
Ideation
Corporate partnering
New products and risk assessment analytics
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
I
II
III
28th East Asian Insurance Congress / Axel Fürderer / Page 16
GEMM
© Metabiota

17. New clients and demands
Data analytics
Agile IT
Collaboration
New risk-related services
New (re-)insurance products
Innovation
Infrastructure
Innovation labs
Innovation scouting
Ideation
Corporate partnering
New products and risk assessment
Reinsurers as Partners in Innovation
Innovation
Areas
Innovation
Enablers
I
II
III
Telematics Motor Use Based Insurance
 Box/OBDII/App solutions;
 Use based insurance on driving behaviour;
 Pay as you drive and Pay how you drive;
 Real-time interaction with the customer;
 Combination with social media functionality;
 Big data analytics of driving behaviour.
New business models
57mph
136min 47miles 3 stops
28th East Asian Insurance Congress / Axel Fürderer / Page 17
© Munich Re

18. Can a reinsurer be a strong partner for innovation ?
Reinsurers as Partners in Innovation
YES
Which areas ? For whom ?What sort of
innovation ?
How ?
28th East Asian Insurance Congress / Axel Fürderer / Page 18
Where ? For what in return ?How quickly ? When ?
© AMF pictures

19. Thank you
14 October 2016
Axel Fürderer