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Prospective Structured Reinsurance Solutions

Why insurers increasingly employ prospective reinsurance for capital management

Rethink your capital retention levels and existing reinsurance structures 

Your businesses changes and grows over time, which is why our structured solutions let you manage your capital in a more targeted, focused and flexible way.  

How can structured reinsurance help meet your capital requirements?

Our bespoke solutions address a broad range of capital requirements from a variety of solvency regimes. So, no matter whether you require additional capital to meet your targeted annual premium growth or to steer your capital adequacy ratio, we have the necessary experience to assist with structured reinsurance solutions. 

Enjoy the benefits of structured prospective solutions

Improve capital efficiency
Release trapped or redundant capital and improve return on equity.
Prepare for growth
Increase capacity for catastrophic risks and insurability of difficult-to-insure risks.
Lower capital cost
Reduce the cost of paid-in capital by reducing volatility.
Enhance operational efficiency
Increase the efficiencies of your insurance programs.
Reduce impact of regulatory change
Mitigate the potential costs of unanticipated regulatory changes.
Customise to your situation
Structure your reinsurance programs around the specific needs of your organization.
Do you have challenging KPIs to meet? Let us work together and create the perfect solution for your specific needs and goals.
Stéphane Bleton
Head of Prospective Reinsurance Solutions

Choose from a multitude of customizable features for your individual structured reinsuracne solution

Listed below are just a few examples of the wide selection of structured reinsurance features we can customize for you. 
Employ reinsurance combined with features that address the liquidity requirements of your organisation’s exceptional activities. For example a funds withheld structure that allows you to retain the bulk of the premium, minimizing disruptions to your investment activities. 
Our solutions can also transfer the risk of adverse development of prior accident year reserves. As part of prospective reinsurance this is typically known as a calendar year solution.
In certain jurisdictions additional limitations for such covers apply and need to be considered.
Retroactive covers as stand-alone solutions are the perfect tool for freeing up redundancies and capital or to ring-fence liabilities.
Reassure a regulator or rating agency with regard to sustainable capital management while benefiting from smoothing effects over time. You can choose tailor-made multi-year structures flexibly adaptable to your expectations. Covers can be adapted to better match specifics within your business plan time horizon.
Restructuring options allow to flexibly adapt the contract to the development in previous periods.

Structuring features like retentions or limits can be automatically re-adjusted based on
previous loss experience or exposure development to better match risk retention over a longer term.

Annual and term deductibles and limits can be set to optimize a solution to match your requirements and risk appetite.

Share in the profit from better than anticipated performance over the term of a multi-year solution. 
Expectations of the loss burden in the first year of a structured solution differ between the parties? Specifically defined additional premium features after one or two years can bridge those differences and help to secure an agreement by lowering the upfront premium.
Like the restructuring option, a prolongation option allows the flexibility to adapt the contract to the development after an initial period of time. Extending a multi-year solution will smooth results over a longer time period by acting as additional buffer while accounting for deviations compared to growth plans.

Prospective Structured Solutions

The Solution

Advantages of working with Munich Re for structured reinsurance solutions

Turnkey reinsurance-based corporate finance solutions from a single source
A flexible approach using instruments proven successful by clients around the globe
Continuous exploration of new solutions for specific motivations arising in changing markets
Support from custom-built Deal Teams interconnected with experts and Client Managers of Munich Re
Streamlined client interfaces that ensure close cooperation and short response times

Discuss your challenges with us and let’s find the relevant reinsurance structures which match your local regulatory and business needs, together.

Talk to our experts
Judith Zeleny
Head of Origination Munich
Andreas Müller
Head of Origination
Placement | ILS Investments