Munich Re forms partnership to create innovative business model for manufacturers

Munich Re has entered into a strategic partnership with Germany-based Trumpf Group to jointly develop a "pay-per-part" model for the manufacturing industry.

The new business model will enable customers to gain access to the latest automated laser cutting technologies without the need for massive investment. It will allow companies to make their production processes more flexible.

Munich Re will act as a business enabler of this model by financing the machine and bearing the resulting investment risk. The IoT service provider relayr, a subsidiary of Munich Re, will provide data analysis for the financing model.

Munich Re will offer performance guarantee wherein customers will also be insured against the financial impact of potential production downtime in the future.

Trumpf, an industrial machine manufacturing company, will supply customers with the required production components - the machines for their factory lines and the corresponding software and services for manufacturing sheet metal parts. Klöckner & Co., a producer-independent steel distributor, will be a development partner of the business model.

Torsten Jeworrek, member of the board of management of Munich Re, said: “The cooperation with Trumpf is an outstanding example of how the combination of Munich Re Group's various offerings – risk solutions, IoT technology and financing – makes it possible to develop innovative business models for the industry. We are convinced that such partnerships represent a forward-looking response to the challenges of an increasingly dynamic market environment.”