MUNICH Re targets innovation

15 September 2014 — Mihaela CIRCU
German reinsurer MUNICH re is signaling a moderate increase in the demand for reinsurance, especially in the emerging markets, combined with a need for more innovative coverage solutions for new risks. With its decision making process and its global presence, MUNICH Re is considering itself to be well positioned compared to its main competitors within the present environment.

Also, the company estimates that there is a slight increase of the reinsurance demand for property & casualty. On the more developed markets, mainly in Europe and North America, it anticipates a growth of the total annual premium volume by 1% over the next three years. For Asia-Pacific and Latin America, the reinsurer expects a 3 to 4% advance in premiums.

On the other hand, reinsurers must find the means of supporting primary insurers to adapt regulatory changes like Solvency II. Also, new risks that arise from technological and social development or from environmental changes require new reinsurance solutions. The focus is on risks connected to the usage of Internet and claims that can lead to reputational damages, which were considered, until recently, uninsurable.

"Insurance solutions for new areas represent the key for a profitable long term development, Torsten JEWORREK, Reinsurance CEO, MUNICH Re said at Monte Carlo, adding that the company he represents had already begun developing such products.

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