Munich Re, one of the leading global reinsurance firms, has reported that despite some challenges in the global risk underwriting space, the European reinsurance market remains dynamic, with demand for property reinsurance protection continuing to expand
The firm, while making this projection at this year’s Baden-Baden event, hinted on its plans to deploy more capital in its European markets, namely where clients demonstrate underwriting discipline in their primary market.
A news report from Reinsurance News, an online industry-focused medium, quoted Munich Re as saying that it will also leverage its financial strength for its clients to absorb shocks that generate excessive fluctuations in their books.
Its analysis shows that increased natural catastrophes frequently drive insured annual losses exceeding $100 billion, and in the first half of 2024, they have already reportedly reached $62 billion, significantly above the ten-year average of $37 billion.
The firm further noted that in Europe, there has also been a rise in non-peak perils such as floods, wildfires and severe thunderstorms which can be accompanied by hail and tornadoes.
To prepare for this, Munich Re said it had continuously built on its nat cat expertise and is explicitly capturing relevant climate change trends in its risk models.
It stated: “Reinsurers and insurers need to ensure a sound pricing system, one that correctly reflects the underlying risks and incentivises risk-reduction measures.”
At the same time, the firm’s research showed that the cyber insurance penetration remained still low, but on the positive side, the European cyber insurance market is expected to grow strongly.
Munich Re boasted that it continued providing significant capacity at adequate terms and conditions, while strictly adhering to not covering uninsurable systemic risks such as cyber war and failure of critical infrastructure.
Commenting on the firm’s research findings and its readiness for risk coverage, the Chief Executive (Non-Life) Germany and Head of Cyber for Europe, Claudia Strametz, said: “We welcome growth but remain insistent that appropriate terms and conditions are built into the original covers as well as reinsurance contracts to ensure a sustainable (re-)insurance market.
“By leveraging our technical expertise we support our clients in overcoming their challenges. We remain strongly committed to our home market Germany and the other European markets, and continue to be a reliable and predictable partner for our clients”, the industry expert added
