The reinsurer Munich Re promises attractive business opportunities from the next contractual renewal in the damage and accident business despite an expected drop in prices.
When the contracts are being negotiated with primary insurers such as Allianz and Generali, the demand for reinsurance protection should continue to grow, Munich Re-board member Thomas Blunck explained on Sunday at the annual industry meeting in Monte Carlo. However, rating agencies predict the reinsurers further falling prices. This should also let the returns sink.
Since this weekend, reinsurers, primary insurers and brokers have been meeting in the Principality of Monaco as usual in order to explore the conditions for large contractual renewal in the damage and accident business at the next year. The renewal round on January 1 is the most important for the industry. In the past renovations on April 1 and July 1, the industry had already accepted price offices.
Previously, reinsurance such as Munich Re, Swiss Re and Hanover Bück had raised their prices for years. For primary insurers, it was therefore increasingly expensive to unload parts of their risks to back insurers and thus to get them out of their own balance. Many therefore kept more risks in their own books. The Munich Re will continue to pay attention to adequate prices and conditions when the contract was renewed, said board member Stefan Golling.
According to the Munich RE, the need for reinsurance protection will continue to increase for the foreseeable future. The insured damage caused by natural hazards have been regularly over $ 100 billion a year since 2020. In the first half of the year alone, they were $ 80 billion, the second highest value since 1980. There are also new risks due to more fluctuating inflation rates and a poorly predictable customs policy.
If the Munich re was long as the world’s largest reinsurance in the world, according to rating agencies, it was most recently overtaken due to a new accounting standard from Swiss Re from Zurich. Hannover is still in third place in the world rankings.
/STW/ZB
Monte Carlo (dpa-Afx)
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