- Increasing interconnection of the global economy creates growth areas for insurers and reinsurers with experience in complex risk management
- Munich Re develops innovative solutions for industrial enterprises as protection against selected enterprise risks
- The claims experience in 2007 so far shows that risk-commensurate prices, terms, and conditions are necessary
Munich Re estimates that, in the years to come, the insurance industry will continue to grow more strongly than the global economy. The driving forces are, on the one hand, developments in the economic and technological spheres, which persistently give rise to new demand for insurance. A major role will be played here in particular by emerging countries. On the other hand, growth will also be promoted by innovative insurance products. With the increasing interconnectedness of industries internationally, risks are becoming more and more complex, calling for the development of intelligent and creative solutions. This results in growth opportunities for insurers and reinsurers that have outstanding risk management capabilities.
New Special Enterprise Risks unit
Claims experience so far in 2007 – Implications for the renewals
Terrorisms pools under discussion
The attack on the World Trade Center made it very clear just how high the loss potentials are from acts of terrorism. The established solutions for covering terrorism risks have again come under discussion in various countries. In the United States and Germany, the further existence of the terrorism pools TRIEA and Extremus is under negotiation, whilst in France changes in the terms and conditions of GAREAT are being discussed. In Belgium, on the other hand, a new pool is being planned. As before, Munich Re supports pool solutions involving state guarantees for peak risks. This is the only means of making sufficient capacity available and spreading the risk over many different shoulders. Moreover, it is evident that investors shy away from locations where there is no clear ruling on how the risk of terrorism is to be handled.
Board member Dr. Torsten Jeworrek: "We will continue to make use of our flexibility and creativity to find solutions for complex risk situations. However, risk-adequate prices, terms, and conditions are a prerequisite for maintaining stable income and financial strength over the long term in the interests of our clients, shareholders, and staff."
Munich Reinsurance Company
signed Dr. Jeworrek signed Dr. Lawrence
This media information contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of Munich Re. The company assumes no liability to update these forward-looking statements or to make them conform to future events or developments.