Benefit from Solvency and Rating Support

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Benefit from Solvency and Rating Support

Insurance regulation and supervision is evolving in countries all over the world and this forces organisations to meet more stringent capital requirements. At the same time, the assessment of rating agencies has a major impact on the financial flexibility of businesses. In this environment, a capital shortfall could put your organisation into a difficult situation fast – for example, forced measures from a regulator or a negative rating outlook, which threaten that a rating downgrade might follow. Capital relief focused reinsurance mitigates such downside risks, increases the scope of capital management instruments and can improve your capital efficiency fast and flexibly.

Meeting the challenge

Your organisation is subject to heterogeneous markets and regulations that require an individual assessment of risk drivers and the specific regulatory environment. With this in mind, we offer a wide range of solutions suited to specific requirements resulting from solvency models for Solvency II or the China Risk Oriented Solvency System (C-ROSS), Rating Capital Models from S&P or A.M. Best, or other Risk-Based Capital (RBC) models. Fitting these models to your individual situation is achieved in close collaboration with you. Our worldwide coverage and experience also allows your organisation to gain insights into relevant developments in other markets.

Solvency and rating solution components:

Structured Quota Share

Use structural elements like sliding scales and loss participations to create a capital relief effect by allowing cessions of larger volumes.

Combined Prospective and Retrospective Covers

Enhance structured prospective reinsurance solutions with a retrospective cover to decrease reserve risk in an efficient way and seek immediate balance sheet effects.

Multi-year solutions

Reassure a regulator or rating agency with regard to sustainable capital management while benefiting from diversification effects over the years.

Tailor-made non-proportional solutions

Address specific catastrophe scenarios in solvency or rating models.

Jaques Studer

Like time, capital is a valuable resource. Cut to the chase and discuss optimising your organisation’s capital position with us directly.

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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.