Page 21 - The Insurance Times November 2024

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Growing demand in Eu- ral catastrophes worldwide now often has proven volatile post Covid pan-
exceed US$ 100bn. In the first half of demic, with primary rate increases lag-
rope: Munich Re remains 2024, they already reached US$ 62bn, ging behind surging repair costs. Pres-
disciplined while further significantly above the ten-year aver- sure has generally come down as infla-
age of US$ 37bn, and large hurricanes tion abated, but many markets are still
expanding have been hitting the US lately. in recovery mode. Munich Re stood by
After a few years of strong growth, the This increasing trend is obvious in Eu- its longtime clients and will remain a
European reinsurance market should rope as well, particularly for non-peak consistent and strongly capitalised
remain dynamic, with demand for perils such as floods, wildfires and se- partner for clients who demonstrate
property reinsurance protection con- vere thunderstorms which can be ac- risk adequate pricing and a consequen-
tinuing to grow. With a strong capital
companied by hail and tornadoes. The tial underwriting while adapting to the
base, a globally diversified business May 2024 flooding that primarily af- more volatile inflation environment.
model and a proven track record of fected Germany and, more recently,
delivering effective solutions to its cli- the widespread flooding in central Eu- Cyber:
ents, Munich Re is well-positioned to As cyber insurance penetration is still
rope in September are part of a con- low, the European cyber insurance
meet this demand at appropriate tinuing trend that has been accelerat-
terms and conditions. ing in recent years. market is expected to grow strongly.
Munich Re, as one of the globally lead-
Munich Re stands ready to deploy While socioeconomic factors such as ing risk carriers in this field, continues
more capital in its European markets, rising inflation and increasing asset to provide significant capacity at ad-
wherever its clients demonstrate un- values located in high hazard zones equate terms and conditions and aims
derwriting discipline in their primary have a profound impact on this upward for further growth in line with market
market, with sound exposure manage- loss trend, scientists attribute changes development, while strictly adhering
ment and achieving risk-adequate origi- in the severity and frequency of non- to not covering uninsurable systemic
nal rates. Munich Re will leverage its peak weather hazards, at least in part, risks such as cyber war and failure of
exceptional financial strength for its to climate change. critical infrastructure. Munich Re con-
clients to absorb shocks that generate tinues to invest in expertise and to fur-
excessive fluctuations in their books. Munich Re continuously builds on its
nat cat expertise and is explicitly cap- ther develop risk and accumulation
Munich Re continues to invest in out- turing relevant climate change trends models.
standing risk knowledge and modelling in its risk models. Reinsurers and insur- Continuity in strategy and under-
expertise in order to provide that sup- ers need to ensure a sound pricing sys- writing stance
port to clients as the environment be- tem, one that correctly reflects the Going forward and starting with the
comes ever more complex and volatile underlying risks and incentivises risk- upcoming renewals, Munich Re will be
– particularly in the following areas: reduction measures.
guided by continuity in strategy and
Natural catastrophes: Motor: underwriting stance. As a financially
The insured annual losses due to natu- The motor insurance market in Europe strong risk carrier with outstanding ex-

The Insurance Times November 2024 19