The risk landscape for insurers and their clients is changing faster than ever before, especially in terms of technologies, services, sales channels and demand patterns. In response to these changes, Munich Re has further intensified cooperation with its clients and partners in order to find appropriate new insurance solutions. The first results of this cooperation are already bearing fruit.
Munich (Oct. 19, 2015) – Dynamic market change may bring countless opportunities, but it invariably also brings new risks. In a client survey conducted by Munich Re, some three quarters of insurance companies said they believe that digitalisation will have a dramatic impact on the industry. In order to respond appropriately to these developments, insurers need to be able to analyse the different technologies and how people use them. A prime example of this is autonomous driving: the more influence the underlying technologies have on driving behaviour, the more liability will change and extend to the manufacturers. Munich Re’s view is that accident victims should continue to expect compensation regardless of the technology used. At the same time, insurers must also be able to seek recourse from the manufacturers. In order to find risk-commensurate solutions, insurers need to be able to assess these increasingly complex and rapidly changing technologies and the associated liability issues, not to mention the range of different national regulations that need to be observed.
But it is not just road traffic: the continuing spread of digitalisation is changing nearly all economic sectors and areas of our everyday lives. Many new opportunities are accompanied by new risks. “The demand for insurance solutions to combat cyber risks will increase rapidly” explains Munich Re Board member Ludger Arnoldussen. “It will be necessary to consider quite diverse client profiles, ideally by way of modular product systems.” Global partnerships, for example with IT providers and scientific institutes, a broad knowledge base and managing risk accumulations are further pillars for the coverage of cyber perils.
“In a fast-changing market environment, close client contacts are essential. We are also taking a new approach by way of cross-sector partnerships and cooperation initiatives”, added Arnoldussen. For example, Munich Re worked together with a specialist company from Silicon Valley on data analysis for a pandemic cover against the infectious disease MERS. Cyber risks have been re-evaluated in cooperation with a software company, and with the support of a start-up company it has been possible to drastically reduce the processing times in underwriting disability insurance. There are also specific cooperation initiatives with scientific institutes, for example in order to use the results of a testing facility for autonomous vehicles.
About Munich Re
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the 2014 business year, the Group, which combines primary insurance and reinsurance under one roof, achieved a profit of �3.2bn on premium income of over �48bn. It operates in all lines of insurance, with almost 43,000 employees throughout the world. With premium income of around �27bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Munich Re’s primary insurance operations are concentrated in the ERGO Insurance Group. ERGO is one of the largest insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2014, ERGO posted premium income of �18bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to �227bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.
Source: Munich Re