Wesure has signed on multi-year engagement agreements with Munich Re, one of the world’s largest reinsurers, which has been accompanying Wesure since it started operations.
According to the agreements, which were signed with the involvement of New Re Capital Partners, Munich Re’s share of the panel of the subsidiary’s reinsurers in the motor sectors (compulsory and property) will increase. Agreement was also reached on financing, via payment on account of projected future commissions totaling 22.5 million shekels, for a period of three years, the financing bearing interest at a rate of 0.65% per annum.
The proportionate reinsurance agreements with Munich Re have been signed for a period of three years in the area of compulsory motor and other property insurance, and two years in respect of motor property insurance, from January 1 2022 until December 31 2024 and 2023 respectively. At the same time, termination of the tenure of Wesure’s controlling shareholders Emil Weinschel and Nitzan Tzair Harim in the subsidiary will enable Munich Re (as a unique condition) to terminate the agreements at an earlier date.
Given the current market environment, sector sources say that this is a significant achievement for Wesure. It is estimated that the reinsurers lost around 780 million shekels in 2020 in the compulsory motor sector (Wesure’s main area of activity), with the reinsurers’ losses running to around 2 billion shekels in the decade between 2010 and 2020.
Wesure Insurance Chairman Emil Weinschel: “Regarding the world share of the digital insurance companies, the combination of our advanced technology together the professional insurance knowledge assists us in building a stable and profitable economic model which is appreciated by the world’s leading reinsurers, who have been standing with us since the outset.
“We are pleased with the expression of confidence from Munich RE, which is one of the world’s leading and highest quality reinsurers, in Wesure’s digital insurance activity and in its capabilities. The agreement was signed with the involvement of New Re Capital Partners and combines a financial component in the form of an advance of 22.5 million shekels on account of projected commissions. This strategic move strengthens the infrastructure for its continuing business expansion with emphasis on the continuing profitable growth of the digital company also in the years to come”.