Swiss Re Ag · SIX:SREN
Swiss Re — Monte Carlo press conference 2024
18 slides from Swiss Re's conference presentation, Sep 9, 2024
Slide 1: Swiss Re Press conference Monte Carlo
Swiss Re Press conference Monte Carlo, 9 September 2024
Slide 2: Your speakers today
Your speakers today Urs Baertschi Gianfranco Lot CEO Property & Casualty Reinsurance CUO Property & Casualty Reinsurance 9 September 2024 | Monte Carlo press conference 2
Slide 3: Macro environment
Macro environment In a rapidly evolving, increasingly interconnected global environment, reliable risk assessment and effective volatility management are key Geopolitical risks Technology Economic environment Climate change Societal risks 9 September 2024 | Monte Carlo press conference 3
Slide 4: The re/insurance industry plays a vital role in absorbing shocks
Macro environment The re/insurance industry plays a vital role in absorbing shocks and acts as a safety net for the global economy USD 108bn ~80% in insured losses for natural of Caribbean insurance payouts for catastrophes in 2023 Hurricane Beryl funded by reinsurers (Swiss Re estimate) >USD 150bn
Slide 5: Heightened risk of unrest increases unpredictability and market volatility
Macro environment Heightened risk of unrest in a politically charged environment increases unpredictability and market volatility Geopolitical risk index1 Increased political polarisation observed in a record voting year (>70 countries voting) 6 World War II Protests in 132 countries since 20172, wi
Slide 6: World economy is normalising after inflation shocks and central bank tightening
Macro environment World economy is normalising after the inflation shocks and central bank tightening cycle, returning to growth that is more aligned with long-term trends CPI inflation, year-on-year US to continue to outperform, even as its 12% recovery slows and Europe’s begins 10% Gradual and vol
Slide 7: Climate change is expected to lead to hazard intensification and higher losses
Macro environment Climate change is expected to lead to hazard intensification and higher economic losses in the future Global Land-Ocean Temperature index1 (°C) Climate change impacts felt globally, with 1.5 vulnerable areas particularly affected Key global growth markets among least 1.0 prepared d
Slide 8: Narrowing the natural catastrophe protection gap
Macro environment A multifaceted approach that addresses disparities in insurance coverage across the globe can help narrow the natural catastrophe protection gap 10-year average global natural catastrophe losses, in USD bn In 2023, only 38% (USD 108 bn) of the total global economic losses from natu
Slide 9: The highly elevated litigation activity in the US comes at a cost for society
Macro environment The highly elevated litigation activity in the US comes at a cost for society Increased US litigation activity has caused material USD 443bn 48% vs 20% loss activity and reduced capacity for the industry Costs and compensation paid in Commercial tort cost borne by small Challenges
Slide 10: Demand for property insurance continues to grow, as does adaptation importance
Demand for re/insurance As demand for property insurance continues to grow, so does the importance of adaption and mitigation measures Economic losses from nat cat events and world real estate price index1 Increasing property values and urbanisation are 600 140 the main drivers of loss growth 500 12
Slide 11: Increasing loss trends exacerbate the challenging casualty market
Demand for re/insurance Increasing loss trends due to heightened litigation activity can further exacerbate the already challenging casualty market Limits purchased over the last 10 years1 Median limits purchased declined by ~46% in real terms between 2014 and 2023 USD 323m –72% Transportation (rail
Slide 12: Positive construction outlook and green transition drive engineering demand
Demand for re/insurance Positive construction outlook and green transition translates into demand for engineering re/insurance Global construction outlook1 Infrastructure stimulus will continue to drive growth in civil engineering activity 3.0 2.9 2.1 Global push to a green transition is supporting
Slide 13: Cyber market primed to continue its growth trajectory
Demand for re/insurance Cyber market primed to continue its growth trajectory as awareness of frequency and sophistication of cyber attacks is increasing The cyber market shows significant growth potential1 Key risks and loss drivers need to be managed Ransomware attacks 60 84% increase compared to
Slide 14: Clients have specific needs to increase resilience
Client needs Clients have specific needs to increase resilience in the current uncertain environment Risk awareness and management Data & analytics Achieve greater precision to assess, • Modelling capabilities mitigate and transfer risks • 360° view of risks Risk transfer Tailored solutions Obtain o
Slide 15: Strong partnerships are key to making the world more resilient
Partnering for progress Strong partnerships are key to making the world more resilient Partners are at the centre of our strategy Market leading capital strength for our partners Improve data quality and Alignment of interests across transparency stakeholders ~30 ongoing R&D partnerships1 ~80 000 an
Slide 16: Q&A
Q&A Please raise your hand to ask a question 9 September 2024 | Monte Carlo press conference 16
Slide 17: 9 September 2024 | Monte Carlo press conference
9 September 2024 | Monte Carlo press conference 17
Slide 18: Legal notice
Legal notice ©2024 Swiss Re. All rights reserved. You may use this presentation for private or internal purposes but note that any copyright or other proprietary notices must not be removed. You are not permitted to create any modifications or derivative works of this presentation, or to use it for