Reinsurance News

Munich Re, Porsche form consultancy joint venture

16th November 2020 - Author: Katie Baker

Re/insurer Munich Re has founded a joint venture with car manufacturer Porsche and its management and IT consulting subsidiary MHP

Munich Re‘FlexFactory’ aims to make the production of small series of all kinds of different products in the manufacturing industry more flexible and cost efficient.

It also enables customers from the manufacturing industry to implement innovations or article variants faster and more efficiently than in the traditional production process, and with less capital input.

Munich Re says the solution was created to meet a high demand, as manufacturers from various industries look to tackle increasingly individualised customer needs, while shortening product life cycles.

The FlexFactory is designed to address these challenges by allowing a more flexible, economically calculable production landscape in cost-efficient structures.

For this, its offerings combine the respective core competencies of the partners involved on a common platform: Porsche contributes its manufacturing know-how; MHP its expertise in digital process optimisation, especially on interfacing development with production.

The finance and insurance models and a performance guarantee cover for planned production come from Munich Re.

Moreover, Munich Re’s subsidiary relayr adds digital risk analysis via IoT sensor systems to the mix. In the medium term, integration of further technology partners on the open FlexFactory platform is conceivable and desirable in keeping with the concept of an open production ecosystem.

Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board, Finance and IT at Porsche AG said: “The interest shown by the first potential clients shows us that there is great demand for customised products. This joint venture is still small, but it is perfectly formed.

“It can solve the challenge of producing even small series economically and thus open up a new chapter in industrial production. That is why we are combining the production competence of Porsche with the software know-how of MHP and the risk management expertise of Munich Re.”

Ralf Hofmann, founder, shareholder and Chairman of the Board of MHP added: “It is our aim to create significant added value for our customers and for the entire economy with digital, flexible solutions and technological innovations.

“By bundling the strengths of Munich Re and Porsche with the depth of our expertise in digital technologies we can now do just that even in microscale custom production while simultaneously maintaining highly cost-effectiveness.”

Torsten Jeworrek, Member of the Board of Management commented: “With the FlexFactory, we and our partners have created a future oriented platform for opening up new markets, which addresses a central challenge of modern production. Our cooperation once again underlines Munich Re’s innovative power and solution competence as a risk manager and financing expert for Industry 4.0.”

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