By Robert Dixon
Two technology firms are joining forces to develop a new breed of solutions for the reinsurance and life insurance industries.
LOGiQ³ Corp. of Toronto and Swiss IT provider Msg Global Solutions have announced plans to form a joint venture to serve life reinsurers with a “full-spectrum” technology solution.
LOGiQ³ Corp. provides life insurance and reinsurance services to the insurance industry. Msg Global is a provider of technology solutions to several industries and is headquartered in Zurich.
An overwhelming number of insurance company executives surveyed by PwC last year said they plan to invest in new technologies. Legacy systems that have been in place for several years may no longer be able to cope with the speed at which the market changes, Simon Bell, chief operating officer for LOGiQ³, said in an interview with InsuranceNewsNet. Insurers want to be able to move quickly to keep up with the market’s demands for new products and services, he added.
“One of our greatest successes at LOGiQ³ has been developing a team with in-depth life industry knowledge--from underwriting through to audit,” Bell said in a company statement. “By joining our team with Msg Global's technology capabilities and global reach, we’ll accelerate growth and development while meeting a need in the insurance industry.”
The joint venture will utilize each entity’s specific expertise and experience to create a leading offering of life insurance and reinsurance technology and services.
The two firms have worked together on projects in recent years, Bell said in the interview. One project in the property and casualty market is underway for the two firms; another in the life insurance and reinsurance space is expected soon, he added.
Msg Global has offered large-scale IT solutions built around the SAP platform for the reinsurance market; LOGiQ³ brings in-depth experience in the life insurance and reinsurance industries to the table, Bell said.
In the release, Bernhard Lang, chief executive officer of Msg Global said, “Insurance clients today demand greater cost-efficiency and decreased dependency on in-house solutions. The market experience of LOGiQ³, and the implementation and system development experience of Msg Global, provide a valuable service to our clients and help meet this goal.” Lang continues, “We will provide solutions based on best practices and SAP technology for the life reinsurance market in North America.”
While the initial focus is on global reinsurance companies, Bell said the joint venture hopes to take an existing life reinsurance solution and explore the opportunity for its use among small- to medium-size players. He expects that to happen within the next 12 to 24 months.
The partnership is still in its formative stages. The as-yet unnamed entity is expected to launch in the second half of 2013. Bell told INN that the partners are still exploring who will lead the partnership and where it will be based.
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