MGA Model Evolution in Asia

1 Reinsurer Reinsurers focus on four scenarios to reshape and adapt their business model to be ready for the future Development scenarios for reinsurers Scenarios description 1 Orchestrating an ecosystem 2 Providing a Tech stack Description Reinsurer connects with different Success factors organizations to broaden product portfolio and exploit new business opportunities > Building attractive offerings or a new entity to connect to new stakeholders is key Challenges > Building connections to not 100% suitable partners and not deriving benefits from those alliances Reinsurer is mainly responsible for building a powerful tech stack of the new offering for the primary insurer > Strong IT know-how > Big developer and service team > Insufficient technology know-how within the company > Old-fashioned IT systems Responsibilities of scenarios along the value chain 1. Reinsurance services 2. Risk taking 3. Pl license 4. Technical platform 5. Brand 3 Offering TPA services Reinsurer acts as a third party provider and makes sure that all backend processes (e.g. claims and services) are running smoothly > Smooth and lean processes > Good reputation to be able to act as partner for primary insurers > Bad technical infrastructure (e.g. to forward claims in an appropriate time) 6. Product (incl. underwriting) Roland Berger 4 Offering MGA services Reinsurer builds a specialized type of insurance agent or broker that has been granted underwriting authority by a primary insurer > Customer-centric approach > Scalability in different markets > Finding no Pls in the respective market to be able to scale the product 7. Policy administration 8. Service 9. Claims management 10. Sales & Distribution 1. Ecosystem 2. Tech stack 3. TPA 4. MGA = covered by reinsurer = can be covered by reinsurer or Pl = covered by Pl Source: Roland Berger 20200525_MGA model evolution Asia_vf.pptx | 12

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