Solutions for holistic risk management

Munich Re’s declared objective is to focus on expanding the range of insurable risks. However, the intention is not to render all the standard exclusions of the past insurable or to assume inherent entrepreneurial risk. With a view to developing holistic solutions for the many new risk types together with our clients, we set up a new unit, Special Enterprise Risks (SER). We work with our clients on a project basis, first performing a detailed analysis of their risk profile and then on the basis of the analysis, deducing with them their need for cover and developing tailor-made solutions.

The solutions generally combine various triggers which may underlie a loss. In addition to the "traditional" costs, the components of the cover can include lost income or the insurance of intangible assets such as brands, reputation and human capital. Munich Re has also developed totally new covers, such as protection for participants in clinical trials for the pharmaceuticals industry and cover for balance-sheet risks in the solar energy sector. These specific solutions provide the client with a degree of certainty in planning for certain risk situations and cash flow requirements as well as permitting optimum allocation of the capital released.

Our target clients are larger companies with turnover of several hundred million euros and more. We do not limit ourselves to any particular sectors or regions.

Prospects

Even a holistic risk management system cannot prevent heavy losses – any system can, for ex - ample, be deliberately undermined and ultimately, not every (extreme) incident can be fully covered ex ante. On the basis of a holistic view of the risk situation, customised solutions are needed. A company must decide which risks are to be retained, insured or covered via the capital markets. Munich Re's SER Unit provides clients with support and advice in all of these three areas – and already offers innovative, tailor-made solutions.

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