VIDEO: MUNICH Re: We have the duty to find solutions for cyber risks, which are a threat at the global level

26 October 2018 — team
Becoming a growing threat globally, cyber risks is both a challenge and an opportunity for the insurance industry. MUNICH Re's representatives talked to XPRIMM TV in Baden Baden, about the different approach to this type of risk that the Group, as one of the most active players on the cyber market solutions, proposes.

"Cyber risks are definitely one of the biggest risk threats to our digitalized network economy and the exposure is increasing. Cyber risks are also global, they affect every part of the world, every country, every industry and every company, to a varying degree, according to the type of industry, but everybody is exposed, including the CEE region. We tend to look at cyber in a holistic way, so it's not just about an insurance product, is also about service and prevention. We have the duty to find solutions for cyber, because the most complicated and the most dangerous thing to do would be not to think about it and not to find a solution about this issue", stated Dr. Petra REINDL - Client Management Executive Switzerland and South Eastern Europe, MUNICH Re.

At the same time, "it's true that most of the economic losses are not insured. This is not only true for the CEE, but for the whole Europe. It's a lack of financial resources, it's also not sufficient awareness of the dangers and risks and also the hope that the government might step in. One solution is the traditional reinsurance solution that we have, with parametric triggers and support in the constitution of state pools - this is one side -, but the other side really has to do with digitalization, which is bringing us new products and new channels, new services and a real new possibility to distribute the insurance", also pointed out Dr. Petra REINDL.

Regarding a comparison between Western and Eastern European markets, MUNIC Re' representatives pointed out that this is manly due to the insurance density.

"If we compare the insurance density of the western European markets with the insurance density in CEE and S-E Europe, we simply have a huge gap still, which is for insurance and reinsurance companies a great spot to be in, to find proper solutions and a way on how to approach it in a way that the population really wants to buy insurance, because they see the need and do not see it as a mandatory cost", stated Tobias SONNDORFER - Client Management Executive Austria, Poland and CEE, MUNICH Re.

Watch the video-interview to find out more.

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