Swiss private banking giant UBS has decided to venture into the country’s insurance sector in partnership with reinsurer Swiss Re.
The wealth manger will launch life insurance offering for property owners in Switzerland.
Together with Swiss Re, UBS will roll out a mortgage solution that will offer coverage of up to $640,000 for disability and up to around $1m for death.
The bundling of banking and insurance products are anticipated to be handled by Swiss Re’s insurtech subsidiary Iptiq.
UBS wants to turn Iptiq into its domestic mortgage lending business, reported Finnews.
This move is said to be an attempt to digitise production and distribution through platforms, that follows Chinese internet giant Alibaba’s model.
UBS Switzerland president Axel Lehmann was quoted by Finnews as saying: “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 personalise Protect risks quickly and easily.”
Swiss Re Life Capital CEO Thierry Léger said: “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.”
According to the report, 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.