Cayo, a company that developed a system for selling life insurance through the web, is suing U.S. subsidiaries of Swiss Re over problems with a digital life insurance sales initiative.
Cayo filed a complaint against Swiss Re America Corp. and two other Swiss Re businesses — Lumico Life Insurance Co. and iptiQ Americas — in a Colorado state court in Denver in October.
The defendants moved earlier this month to transfer the case to the U.S. District Court in Denver.
Cayo and Swiss Re
Cayo says it agreed in 2017 to use its Huklberry marketing and sales platform to help Crump Life Insurance Services, a broker, sell life insurance policies from Lumico.
Swiss Re predicted that more than 60% of the applicants would buy Lumico coverage, but problems with Swiss Re systems held automated system conversion rates to less than 2%, Cayo says in its complaint.
The Crump Life call center helped push the total conversion rate to 7% by October 2019, but Swiss Re then told Huklberry to increase marketing investment to $250,000 per month, from $80,000, in spite of the underwriting system problems, the complaint alleges.
Swiss Re later sent Huklberry a termination letter, and Huklberry declined to sign the letter, Cayo says.
