Two former managers of Zurich insurance company have started a brokerage, according to information obtained by finews.com. Their target market is corporate liability coverage, with a digital platform aimed at small- and medium-sized companies.
The work as head of a company can end in tears – admiration turning rather suddenly into claims that are pursued with the help of the toughest lawyers. The obvious recent examples are Pierin Vincenz – the prominent former head of Raiffeisen is being held in custody in Zurich.
Tailor-Made Solutions
Such cases show the need for companies to have a proper liability insurance. They cover not only assets of executive and supervisory board members against claims. They also include the costs of fighting excessive demands.
Markus Haefeli and Peter Schroeder are experts in the business, both former managers at Zurich Insurance Group. The two have started Haefeli & Schroeder Financial Lines, according to information obtained by finews.com. They are providing corporate liability, professional liability, fidelity and cyber insurance policies.
The brokerage is licensed by Swiss regulator Finma and develops tailor-made solutions for big companies in particular, for which they receive a commission from insurers.
Digital Platform Set for Launch
In addition to this business, the two managers also intend to soon launch a digital platform they say is the first insurtech platform for financial-lines products. They will provide the platform to brokers free of charge.
«There will be a massive reduction in time» it takes to sign a policy, said Haefeli. «The quality will increase and the costs decline thanks to digitization, which in turn will lead to lower premiums.»
The platform is intended for use by small- and medium-sized companies. It is this business segment which also faces a massive increase in demands from a regulatory environment, a rise in legal challenges as well as cybercrime attacks. Demands that directly impair the future of the smaller businesses.
«We estimate the annual premium volume in Switzerland to 350 to 500 million Swiss francs,» said Haefeli.
A Young Business
Financial lines claims are a new segment within the insurance industry, with the first products appearing on the market in the middle of the 1990s. The business since has expanded strongly, with double-digit annual growth rates.
The two entrepreneurs are well-known experts in this field. Haefeli until recently was responsible for financial lines at Zurich Insurance Group, the biggest provider of such products in Switzerland. And Schroeder in the same division was in charge of financial institutions, the biggest customer base.
