THE 2010's

Online All the Time

As online technologies mature, human society has been transformed in ways no one could have imagined. It has touched every part of our lives, including how we understand and protect ourselves from risk.

One of the biggest long-term consequences of the 2008 financial crisis became a historic drop in interest rates that have at times teetered near zero. Even the gradual economic recovery did little to change this. The negative effect on the insurance and banking industry has been tremendous. German life insurance, because of their fixed rate Kapitallebensversicherung policies carried over from previous decades, have been especially hard hit. This has spurred on a trend toward runoff business: companies sell off their poor performing portfolios to companies who are specialised in maximising administration efficiencies, and thus are able to squeeze a profit out of these policies.

The now merged COR&FJA AG became msg life ag in 2014. Because of its long experience in optimising IT processes for insurance clients, it has become an ideal partner for helping companies with their runoff processes. Runoff is now a specialised area of expertise for the company. Today msg life has a staff of nearly 1200, offices in nine countries and a product palette of close to 30 products. In addition to their msg.Life Factory standard software for life insurance, they offer msg.Insurance Suite as an all-in-one insurance solution, plus packages specific for health, P&C and many other aspects of insurance administration for an international market.

In addition to being a leader in advanced, end-to-end integrated platforms, msg life is a specialist in the migration of older policy portfolios into these new systems. This makes msg life the ideal partner for insurance companies in all aspects of IT modernisation.

In the meantime, human lifestyle around the globe is increasingly digital. Smartphones are ubiquitous, which means that people can potentially be permanently online. Digital services for virtually every aspect of life are being created at breakneck speed. Insurers however remain behind the curve. msg life has developed a new product line to help make the transition easy for insurers to offer a complete omni-channel experience. This combines multiple online access points with traditional sales agent consulting. The user experience becomes the centre point of the customer journey.

The shift to cloud-based services has also become a dominant trend in the last ten years. msg life is helping insurers to make the jump here too, so that they can maintain data integrity and security as they benefit from the advantages of scale, speed and access from the cloud.

Going forward, probably the most exciting future trend will be using artificial intelligence and machine learning to create new products and achieve a level of individualised customer service previously unimaginable. New kinds of insurance promise a flourishing future for the industry as demographics, lifestyles and risk management continue to evolve.

msg life today is leading the way in adapting deep neural networks to insurance paradigms.

Just as FJA and COR were pioneers in adapting mathematical models to insurance in the 1990s, msg life today is leading the way in adapting deep neural networks to insurance paradigms. The future is here and msg life looks forward to continuing its role in helping insurers around the globe to prepare for and prosper from it.

Back to overview