Global reinsurance giant Munich Re has signed a cooperation agreement with international technology and service company Bosch, in an effort to develop new solutions for connected manufacturing in Industry 4.0.
The agreement was signed on February 22nd, 2018 at the Bosch ConnectedWorld conference, and is the first Internet of Things (IoT) partnership between a reinsurance company and a technology firm.
The agreement sees the hardware, software and services expertise of Bosch combine with Munich Re’s risk and capital knowledge and expertise, in order to develop new packages of solutions for connected manufacturing.
As manufacturing companies around the world look to adapt to the evolving market landscape, many are looking at ways to optimise production, considering connecting their manufacturing processes. For this to happen, companies require new equipment or IoT-refit solutions that enable machines to cooperate and connect to the firm’s IT system.
However, this can be very costly and difficult to implement for some in the manufacturing market, especially small and medium-sized enterprises, and, the new partnership between Munich Re and Bosch aims to develop new solutions that meet the needs of the marketplace.
Dr. Stefan Hartung, Bosch board member responsible for manufacturing coordination and thus also Industry 4.0, said; “Too many companies still shy away from becoming involved with connected production because they are concerned about the financial risks. We aim to solve this problem. Bosch and Munich Re will develop intelligent solutions that make it easier for clients to get into connected production.”
Member of Munich Re’s Board of Management, Torsten Jeworrek, commented; “We are delighted that, in Bosch, one of the world’s leaders in technology, we have found our first strategic partner with whom we will develop new business ideas for manufacturing companies. By combining technology, risk management and financial instruments, we will offer added value to clients keen to make use of the opportunities provided by Industry 4.0.”
According to an announcement on the new partnership, Munich Re and Bosch are currently working together and with clients in order to design specific packages in the first pilot projects. The idea is to identify the correct machinery and production data needed to conduct an in-depth analysis, and ultimately optimise production.
The holistic approach is designed to support the desires and needs of manufacturing companies to implement connected projects along the entire value chain, while at the same time lowering risks to a more manageable level and utilising innovative financial mechanisms.
The partnership offers clients sensor-based loss-prevention measures, innovative financial instruments for risk transfer, and clients also receive advice on all areas of their connection project together with the relevant software tools and services.
The agreement between Munich Re and Bosch further highlights the increasingly influential and meaningful role advanced technology is having on the insurance and reinsurance industry, and importantly, supporting the development of adequate and affordable solutions for buyers of protection.