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Swiss Re to exit iptiQ business

Monday 20 May 2024 13:26 CET | News

Reinsurance and insurance provider Swiss Re has announced its plans to withdraw from the loss-making digital white-label business iptiQ following a strategic review. 

As detailed by the company, Swiss Re’s decision to exit the iptiQ business was based on a strategic review, with it incurring restructuring costs in the upcoming quarters. The company mentioned that it would take into consideration options for the iptiQ business in which its insurance products can be advertised and offered under a partner’s own brand.

Swiss Re has announced its plans to withdraw from the loss-making digital white-label business iptiQ following a strategic review.

Swiss Re’s website mentions that iptiQ is a digital B2B2C company that focuses on unlocking insurance to drive business growth and customer value for its partners around the world. The business offers straightforward life and non-life insurance products and delivers multi-channel customer experiences via its advanced end-to-end insurance platform. Also, iptiQ allows customers to develop digital life, health, and non-life insurance products, design end-to-end insurance journeys, and integrate solutions across a range of distribution channels, among others.

Why does Swiss Re plan to drop the iptiQ business?

According to Swiss Re’s officials, the reason for the current decision is that the market landscape is significantly different from the one when iptiQ was developed. Considering the company’s changed conditions and its strategic priorities, Swiss Re concluded that it was no longer the suitable owner for the iptiQ business. In addition, iptiQ lost USD 250 million in 2023, however, the amount was expected to be less in 2024. Representatives mentioned that the underlying opportunities for Swiss Re’s core businesses of large commercial insurance and reinsurance have been significantly improved compared to seven or eight years ago.

Furthermore, Swiss Re is set to incur restructuring costs in the coming quarters, with the amount depending on the current decision. The company initiated the white-label business in 2015, recently expanding to additional geographies. Since 2022, the iptiQ business lost more than USD 600 million and was projected to have a loss in 2024 as well. Swiss Re announced its decision as part of its first-quarter earnings report. The insurance company expressed its commitment to applying deep knowledge, intelligent data, and capital strength to anticipate and manage risk.

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Keywords: insurance, financial services, B2B payments, B2B2B2C, digital banking
Categories: Banking & Fintech
Companies: Swiss Re
Countries: World
This article is part of category

Banking & Fintech

Swiss Re

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