Multinational investment bank UBS is joining forces with global reinsurer Swiss Re to launch a life insurance offering for property owners in Switzerland.
The offering will allow UBS mortgage clients to insure against disability up to $640,000 and against death up to around $1 million.
UBS supposedly wants to bake Iptiq, Swiss Re’s insurtech subsidiary, into its domestic mortgage lending business and leverage its data-backed product engine, on which it’s possible to design tailored solutions for business clients.
This move is said to be an attempt to digitise production and distribution via platforms, in a similar fashion to what Chinese internet giant Alibaba has done.
Reports suggest Iptiq is set to be carved out of Swiss Re’s life capital division next year and be placed into its own division reporting directly to CEO Christian Mumenthaler, a move that could underscore its strategic importance to the reinsurer.
Axel P. Lehmann, President UBS Switzerland, said, “Securing yourself against unforeseen events is of central importance for every homeowner. We are pleased to be able to offer our mortgage customers an innovative offer in cooperation with the Swiss Re subsidiary iptiQ, with which they can personalize Protect risks quickly and easily.”
Thierry Léger, CEO Life Capital, Swiss Re, added, “We are pleased to be working with UBS and to offer their mortgage customers an innovative life insurance solution thanks to our digital iptiQ platform.
“Together with partners, we are developing customized and customer-oriented insurance offers to make even more people affordable and enable insurance coverage tailored to their needs.”
The new offering will be available to UBS clients in central Switzerland as of July 15 as part of a test phase. The nationwide launch is planned for early 2021.