Munich Re prepares for European reinsurance growth driven by natural catastrophes
Munich Re prepares for European reinsurance growth driven by natural catastrophes | Insurance Business Asia
Reinsurance
Munich Re prepares for European reinsurance growth driven by natural catastrophes
Reinsurer will allocate capital in regions with sound exposure management and risk-adequate pricing
Reinsurance
By
Kenneth Araullo
Munich Re announced that it is preparing to meet the growing demand for reinsurance protection in Europe, following several years of significant market expansion.
The re/insurer noted that it sees continued demand for property reinsurance, driven by the increasing need for protection against natural catastrophes. With a strong capital base and diversified business model, Munich Re says that it is positioned to provide solutions to its clients while maintaining disciplined underwriting practices.
The company also noted that it is willing to allocate additional capital in European markets where clients demonstrate sound exposure management and maintain risk-adequate pricing in their primary markets. Munich Re’s financial strength enables it to support clients in absorbing shocks from market fluctuations.
As the risk landscape grows more complex, Munich Re also said that it continues to invest in risk modeling and expertise to navigate volatility, particularly in areas such as natural catastrophes, motor insurance, and cyber risks.
The reinsurance market has seen a significant rise in losses from natural catastrophes. In the first half of 2024 alone, global insured losses from such events reached $62 billion, compared to the ten-year average of $37 billion. In Europe, non-peak perils, including floods, wildfires, and severe thunderstorms, have become more frequent, contributing to this trend.
Munich Re’s ongoing focus on natural catastrophe expertise allows it to incorporate climate change factors into its risk models and encourage sound pricing systems that reflect underlying risks and incentivize risk-reduction measures.
In the motor insurance sector, post-pandemic volatility remains a challenge. While inflationary pressures have subsided, many markets are still recovering. Munich Re has supported its long-term clients and will continue to partner with those who maintain risk-adequate pricing and manage volatility in the current environment.
The European cyber insurance market is also expected to grow significantly due to low penetration rates. Munich Re said it was continuing to invest in cyber risk models and expertise to support market growth.
Looking ahead to the upcoming renewals, Munich Re will maintain its strategy and underwriting stance, focusing on sustainable terms and conditions.
“By leveraging our technical expertise we support our clients in overcoming their challenges. We remain strongly committed to our home market Germany and the other European markets, and continue to be a reliable and predictable partner for our clients,” said Claudia Strametz (pictured above), chief executive (non-life) Germany and head of cyber for Europe.
Clarisse Kopff, a member of Munich Re’s board of management, said the company was ready to accommodate the growing demand for reinsurance.
“We aim for ever deeper partnerships with our clients and for creating new ones. We put our financial strength and underwriting expertise at their service to enable mutual profitable growth,” Kopff said.
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