Munich (Reuters) – Munich Re is preparing insurers and brokers for further rising prices for reinsurance protection ahead of the upcoming round of contract renewals.
“So that we can sustainably fulfill our role as a risk carrier, we work with our customers to adapt prices and conditions to the changing risk environment,” said board member Clarisse Kopff in a press conference on Thursday. Munich Re would then also be able to provide more capacity. Inflation – which the economists of the world’s largest reinsurer for the euro zone also expected to be three percent in 2024 – remains a key factor.
The reinsurance industry will be meeting with insurers and brokers in Baden-Baden from Sunday. This is the start of negotiations to renew the contracts on January 1st – especially in Germany and Europe. Prices have been rising for years, but experts are wondering how long this “hard market” will last and whether the price increases will be enough to offset greater damage. In addition to inflation, Kopff referred to geopolitical risks, increasing cyber attacks and more and more severe natural disasters. In Europe there was “an unprecedented series of individual natural catastrophe losses exceeding the billion mark this year”.
(Report by Alexander Hübner, edited by Hans Seidenstücker. If you have any questions, please contact our editorial team at [email protected] (for politics and economics) or [email protected] (for companies and markets).)
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