Munich Re Targets Niche Expertise to Meet New and Complex Risks

Munich Re [85011] said it is opting to enhance its position as a comprehensive provider of reinsurance solutions and risk management in view of emerging trend for new and more complex risks.

Under a redefined structure, the German reinsurer will put all its reinsurance units under the uniform brand of Munich Re. Managing general agencies and insurance units which operate specialized primary insurance activities out of the reinsurance segment will be designated Risk Solutions under the same brand. "Highly sophisticated balance-sheet management, coverage of alternative and complex risks and expanding the insurability of risks: these are the issues we have to address," said Torsten Jeworrek, member of management board at Munich Re.

"We want to be the first port of call for our clients when it comes to solving complex underwriting issues," said Jeworrek at this year's Monte Carlo Rendez-Vous.

A key pillar of Munich Re's strategy puts more emphasis on expanding risk knowledge and creating individual solutions for clients, supported by specialized consulting services such as risk modeling, balance sheet and asset liability management.

In a bid to broaden its client base, Munich Re will expand business with insurance pools and public-private enterprise partnerships and in specialized primary insurance segments which need niche risk expertise.

"Traditional reinsurance is our core business and will remain so. But we should aim to deploy our know-how even more precisely in future," said Jeworrek. In preparation for Europe's Solvency II standard, Munich Re also provides services in consultation, workshops and tools.

For construction projects, Jeworrek said Munich Re offers one-stop service from risk assessment in the planning phase to insurance know-how, reinsurance capacity and risk inspections during the construction phase, and completed risk cover after the project is done.

Munich Re currently has a Best's Financial Strength Rating of A+(Superior).