Taking insurance a stage further
Partnerships provide new opportunities for developing and emerging countries
Millions of people, primarily in developing countries, lack adequate insurance cover and financial protection. At the same time, it is precisely these countries that suffer frequent natural catastrophes. Munich Re has entered into » public-private partnerships in the field of primary insurance and reinsurance in order to further the development and promotion of innovative insurance solutions for the populations affected by such risks – at the same time, developing new markets and business segments.
Developing and emerging countries are very frequently struck by natural catastrophes such as floods, earthquakes and cyclones, recent examples being the earthquake in Haiti and the flooding that hit Pakistan in 2010. At the same time, only around 3% of the population of the 100 poorest countries in the world have insurance that would cover the material damage incurred in such instances and thus guarantee a stable economic existence. In Bangladesh, Laos, Angola and Ethiopia, fewer than 1% of the population have access to insurance.
Tapping into the emerging-countries growth market
Consequently, insurance products of this type also constitute a growth market for the insurance industry. Munich Re’s reinsurance, primary insurance and Munich Health business segments are responding to the demand for catastrophe loss cover, providing insurance solutions specifically tailored to the risks and economic situation of these regions.
Public-private partnerships smooth the path
Munich Re is working on new solutions with regional experts and global partners. Public-sector institutions, cooperatives, NGOs and private-sector companies are all involved in multi-sectoral, public-private partnerships. Only by pooling resources can sufficient risk capital, optimal marketing channels, public funding and above all suitable products be ensured in addition to the necessary legal parameters.
“We want our clients to consider us the ‘number one choice’. They include insurers, brokers, industrial clients, government and non-government organisations. […] The keyword here is public-private partnership.”
Dr. Torsten Jeworrek, member of the Board of Management and Chairman of Munich Re’s Reinsurance Committee
Microinsurance risk transfer solutions
Microinsurance is a promising product solution in terms of promoting the spread of insurance cover. In addition, it gives low-income sections of the population financial protection, and cover against risks such as weather-related losses. At the same time, microinsurance is also an answer to the appeal made by the G20 countries at the Toronto summit in 2010 that people on low incomes be given better access to financial services.
Munich Re Foundation promotes microinsurance dialogue
Munich Re is also involved in the microfinancial services sector through the Munich Re Foundation. The foundation and the global Microinsurance Network jointly host the annual International Microinsurance Conference. For instance, some 520 participants from 50 countries met from 9 to 11 November 2010 at Manila in the Philippines to discuss recent developments in this field and, more particularly, to promote the knowledge of risk-protection principles and opportunities for low-income population groups (capacity building). This provides an international forum at which experts can discuss ways of overcoming obstacles currently encountered in this sector on the basis of experience and concepts.
