Expiring Policy Roll-Over (ExPRO), the previously announced legacy product from Gossmann & Cie., which is backed by reinsurer Munich Re, has been piloted in selected insurance portfolios over the last months and has demonstrated a reduction in cost of capital.
Announced in the second-half of last year, ExPRO allows the ongoing transfer of insurance contracts expiring in the future to an external risk carrier, which enables insurers to release equity by directly neutralising in their balance sheets all business that will no longer generate revenue in the future.
Gossmann & Cie. was founded in 2018 by Arndt Gossmann, former Chief Executive Officer (CEO) of DARAG.
In a recent announcement, Gossmann & Cie. has revealed that ExPRO has demonstrated a reduction in the cost of capital in the range of 17% to 49%, while eliminating more than 75% of terminated files.
Munich Re is the strategic reinsurance partner of all transactions and Gossmann & Cie. notes that the reinsurer will assume a large proportion of the risks.
“Our goal is to deliver holistic and data intuitive portfolio refinement solutions, ExPRO being the first in line,” said Gossmann.