Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Baden Baden 2020
11 slides from Munchener Ruckversicherungs-gesellschaft's conference presentation, Oct 19, 2020
Slide 1: Baden Baden 2020: Reinsurance market dynamics
Baden Baden 2020 Reinsurance market dynamics 19 October 2020 Doris Höpke Image: TERADAT SANTIVIVUT / Getty Images
Slide 2: Current market environment
Current market environment Relevant characteristics for market development Insurance capacity Interest rates Loss experience Risk awareness Baden Baden 2020 16 October 2020 2
Slide 3: Insurance capacity stable overall
Insurance capacity Insurance capacity stable overall Alternative capital re-evaluating investment case Traditional reinsurance capital US$bn Traditional market ▪ Traditional reinsurance capital showing overall 394 365 stable development despite recent COVID-19 impact 340 332 345 345 341 ▪ Capital ma
Slide 4: Government yield curve development
Interest rates Government yield curve development Significant profitability decline in recent years EUR – Government yield curves 1,5% 2015 2017 1,0% 2018 0,5% 2016 0,0% 2019 2020 -0,5% -1,0% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Maturity in years Baden Baden 2020 16 October 2020 4
Slide 5: Systemic risks on the rise: Pandemics
Risk awareness Systemic risks on the rise Pandemics Global COVID-19 economic losses up to US$12 trillion1 1 Source: IMF June 2020 Baden Baden 2020 16 October 2020 5
Slide 6: Insurance industry bears significant COVID-19 losses
Risk awareness Insurance industry bears significant COVID-19 losses But there is a huge uninsured portion US$ 30–107bn insured Personal lines Life/Health e.g., travel (average US$ 62bn)1 Commercial lines e.g., D&O, event cancellation, Non-life worker’s comp pandemic Life/Health loss estimates pandem
Slide 7: Systemic risks on the rise: Cyber
Risk awareness Systemic risks on the rise Cyber Ransomware attacks increased by 148% in March 20202 2 Compared to baseline levels in February; Source: Carbonblack, April 2020 Baden Baden 2020 16 October 2020 7
Slide 8: Strong growth expected in cyber insurance market
Risk awareness Strong growth expected in cyber insurance market Cyber is one of Munich Re’s main strategic areas GWP global cyber insurance market1 GWP Munich Re cyber portfolio US$bn US$m 12 700 Digitisation 10 600 Claims RoW PI Legislation 500 8 400 6 300 4 RI US 200 2 100 0 0 2016 2017 2018 2019
Slide 9: Systemic risks on the rise: Climate change
Risk awareness Systemic risks on the rise Climate change ~800 million people live in cities that will be affected by sea-level rise if no action is taken3 3 Source: C40 Cities, RCP 8.5 “business as usual” scenario Baden Baden 2020 16 October 2020 9
Slide 10: Insurance gap still very high in Europe
Risk awareness Insurance gap still very high in Europe Losses from weather-related natural disasters 1980–2019 US$ bn Insured losses 50 US$212bn 40 30 Overall losses 20 US$606bn 10 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Europe: Only 35% of
Slide 11: Thank you for your attention
Baden Baden 2020 Thank you for your attention. 19 October 2020 Doris Höpke Image: TERADAT SANTIVIVUT / Getty Images