Product innovation for life and health insurers
Innovation is the driving force of new business. Together, we can get things moving.
New products for new everyday realities
Life and health insurers operate in a highly dynamic environment. Medical and technological progress and new ways of working and living are a particular driver of continuous change. Changes in these fields trigger changes in people as well as their need for risk protection. Insurers who can identify and respond to these trends at an early stage will be able to benefit from new opportunities and use them to drive growth.
Munich Re has the expertise and methodology you need and can help you to make your new developments a success — from the initial concept to product design and pricing and on to the realisation of automated risk-check and sales processes; we can even help with drafting terms and conditions and training employees.
Design Thinking – Innovative methods
Innovation doesn't happen by chance; rather, it is the result of the creative processes that Munich Re implements both internally and externally via the Design Thinking method. Design Thinking brings teams together, removes the obstacles of pre-existing mindsets and integrates new perspectives. This method supports "co-creation" in the very best sense of the term — in the form of collaboration between researchers, developers, clients and partners that transcends topics, disciplines and hierarchies.
What makes Design Thinking so interesting for the life insurance sector?
Life insurance is subject to strict regulation, and this means that insurance experts can be quick to focus on the risks and limitations of potential new products. Design Thinking encourages a more open-minded and expansive thought process that is driven not from the perspective of what is feasible for the insurer but rather from the perspective of what clients want. Though it is true that feasibility and cost-effectiveness are actually the second stage of the Design Thinking process, coming after ideas development.
Creating long-term security
Risk levels and client requirements are subject to change. That's why we're constantly developing new products. Our goal is to create long-term security. So we're always questioning the status quo. We identify changes to our clients' needs, respond promptly and find new solutions to handle new risks. We work with our clients to create security – by developing products that are flexible, fair, transparent and easily accessible.
Innovation on demand: Munich Re product concepts
Traditional disability insurance products from primary insurers are far from comprehensive when it comes to providing full protection for all working people. For instance, traditional disability insurance products are often simply unaffordable for craftspeople, those on low incomes, people working in uninsurable professions (such as artists) and people with pre-existing conditions. Others consider disability insurance to be too complicated or too opaque.
Potential clients who fall into these categories need innovative new disability products that are tailored to their specific everyday realities. We can work with you to develop the relevant product concepts, combining various risk types and product elements in a way that meets your clients' requirements. This might include cover for critical illness, disability, activities of daily living, accidents, incapacity for work, and care.
This new combination of elements results in product innovations that we then integrate into your organisation in a manner that guarantees seamless processes from sales right through to claims management.
Is your product range as flexible as your clients? If not, you should make changes in order to support growth. Young digital natives, for instance, also want insurance cover – but for shorter periods that they find more manageable, easier to finance and simpler to purchase. Our dynamic solution: Flexible Life.
We can help you to expand your portfolio by adding dynamic insurance solutions. Our products adapt flexibly to your clients' personal and professional circumstances, and cover specific life phases such as a changing employment situation, health issues or securing the future of their children. And, of course, it's all managed online, and contracts can be signed via your smart digital channels.
Demand for traditional lump-sum life insurance products is low in light of sustained low interest rates. The situation is somewhat different with term life products. They are enjoying consistently high demand and offer a range of attractive benefits that appeal to various target groups:
- Fixed term of five, ten or twenty years, for example
- Low costs; no savings component
- Protection for surviving dependants in the event of death, e.g. for the deceased's children until they come of age
Various compositions are possible. Using our knowledge, actuarial expertise and product components that are effectively ready-to-use, we can help you to implement solutions that are tailored to your target group.
The market for critical illness products is growing worldwide. And the reason? Medical progress means that client requirements are changing rapidly. Nowadays, more and more people are surviving even the most serious illnesses – such as cancer, heart attacks and strokes. Demand has never been higher for insurance solutions to cover life situations of this kind, protecting against loss of income and high healthcare costs.
We can provide products that help you meet this demand – tailored to your target group and individually matched to your risk and sales objectives. Our product design supports almost limitless opportunities, including defining the illnesses that trigger a claim and the nature and scope of benefit provision (i.e. a one-off lump sum or dynamic regular payments), plus linking claims to a specific degree of disability.
The available scope is huge. Munich Re has the experience, expertise and data to develop and manage critical illness products throughout the entire value chain on a global scale.
The name says it all: The ADL products that we have developed protect people against the financial risks that may arise from the loss of basic faculties such as walking, lifting, carrying or using one's hands. In the case of people who have physically strenuous jobs, this often means that they are protecting their very livelihoods.
Our ADL product concepts mean that you can offer cost-effective alternatives to traditional disability insurance for target groups that might previously have gone largely unnoticed. We use our actuarial and professional knowledge and our extensive risk check and claim assessment experience to guide you through the implementation process, as well as providing the necessary expertise to support the relevant sales and marketing activities.