MFX to manage Munich Re’s corporate processing system

MFX, a provider of technology and IT outsourcing solutions, has signed an exclusive deal with Toronto-based Munich Reinsurance Company of Canada (MROC) to implement, manage, and enhance MROC’s current corporate primary insurance processing system used by MROC and insurers in the American Re group.
The 50-state property and casualty system combines Web-based policy administration with claims processing and accounting in one integrated package, providing a complete repository for corporate data. As part of MFX’s ASP offering, the system will be marketed throughout the U.S.A., Canada, Europe and Asia.
Originally developed by MROC, the system is used as MROC’s corporate policy administration system for primary business in Canada, as well as by its sister companies and MFX’s current customers the insurers in the American Re group in the United States.
The system processes all major commercial lines of business including general liability, workers’ compensation, package and umbrella, and handles many specialty lines such as boiler and machinery, and aviation.
The application is fully Web-based, using Microsoft.NET and an Oracle back-end. The system is totally scalable and its flexible architecture allows for adding lines of business easily. System edits are contained in tables, simplifying the inevitable task of adding or changing business rules due to legislative changes or compliance needs.
MFX president Charles Fillizola said of the business opportunity: “MROC developed a highly functional, 50-state integrated system and MFX looks forward to leveraging our technology expertise to develop the software even further by increasing its capabilities and enhancing its functionality. Under the terms of the agreement, MFX will fully manage, maintain and market this corporate system, which will be made available to customers online via an application service provider-based model. This will enable customers to establish variable pricing and will negate the need for heavy investment in IT infrastructure, upgrades, technical support and software licenses.”
Fillizola further observed that, as an ASP, MFX would take responsibility for all data storage and security at one of its data centers located in the United States.
MFX CEO Ray Roy noted that “outmoded legacy systems are a drain on resources for insurers,” and that the industry has been calling for a comprehensive, integrated insurance processing system.
“This system was developed in-house by MROC and has also been used by our clients, the insurers in the American Re group, so we are offering a fully road-tested product,” Roy said.
Peter Walker, senior vice president and CIO of MROC, said: “MFX’s strong technology background, together with its experience in the insurance arena, convinced us that they were the right partner to develop and implement this system. MROC is extremely proud of this application. In working exclusively with MFX, we have a partner with the ability to provide the infrastructure, technical support and expertise to continually evaluate, develop and improve this technology.”