International News

Growing demand in Europe: Munich Re remains disciplined while further expanding

After a few years of strong growth, the European reinsurance market should remain dynamic, with demand for property reinsurance protection continuing to grow. With a strong capital base, a globally diversified business model and a proven track record of delivering effective solutions to its clients, Munich Re is well-positioned to meet this demand at appropriate terms and conditions.

Munich Re stands ready to deploy more capital in its European markets, wherever its clients demonstrate underwriting discipline in their primary market, with sound exposure management and achieving risk-adequate original rates. Munich Re will leverage its exceptional financial strength for its clients to absorb shocks that generate excessive fluctuations in their books.

Munich Re continues to invest in outstanding risk knowledge and modelling expertise in order to provide that support to clients as the environment becomes ever more complex and volatile – particularly in the following areas:

Natural catastrophes:

The insured annual losses due to natural catastrophes worldwide now often exceed US$ 100bn. In the first half of 2024, they already reached US$ 62bn, significantly above the ten-year average of US$ 37bn, and large hurricanes have been hitting the US lately.

This increasing trend is obvious in Europe as well, particularly for non-peak perils such as floods, wildfires and severe thunderstorms which can be accompanied by hail and tornadoes. The May 2024 flooding that primarily affected Germany and, more recently, the widespread flooding in central Europe in September are part of a continuing trend that has been accelerating in recent years.

While socioeconomic factors such as rising inflation and increasing asset values located in high hazard zones have a profound impact on this upward loss trend, scientists attribute changes in the severity and frequency of non-peak weather hazards, at least in part, to climate change.