Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Monte Carlo Rendez-Vous 2016
19 slides from Munchener Ruckversicherungs-gesellschaft's conference presentation, Sep 11, 2016
Slide 1: Innovation@Work
Image: used under license from silvrshootr/Getty Images/iStockphoto Innovation@Work Monte Carlo, 11 September 2016 Torsten Jeworrek, Thomas Blunck
Slide 2: Agenda
Agenda 1 Global reinsurance landscape Torsten Jeworrek 2 Munich Re strategy Torsten Jeworrek 3 Update on innovation Torsten Jeworrek 4 Cyber Thomas Blunck 5 Epidemics Thomas Blunck 6 Key takeaways Torsten Jeworrek Innovation@Work Monte Carlo, 11 September 2016 2
Slide 3: Moderate reinsurance premium growth, stronger growth in primary insurance
Global reinsurance landscape Moderate reinsurance premium growth, stronger growth in primary insurance Global premium development from 2009–2015/2016e–2018e P-C RI: Ceded premiums 2015 €bn P-C RI and PI real growth rates (CAGR) RI PI 09–15 16–18 09–15 16–18 Europe €73bn 34% Europe 0% 1% 0% 2% North
Slide 4: Traditional reinsurance capital rather stable – ART outstanding covers growing
Global reinsurance landscape Traditional reinsurance capital rather stable – ART outstanding covers growing Dedicated reinsurance capital US$ bn Trends Traditional RI capital Traditional capacity 400 Capitalisation of the reinsurance industry stable since 2014 In 2015 about US$ 332bn allocated t
Slide 5: Munich Re is well positioned to manage the current market environment and drive industry innovation
Munich Re strategy Munich Re is well positioned to manage the current market environment and drive industry innovation Traditional reinsurance Risk Solutions Innovation Munich Re in excellent position to Continuous growth in expertise-driven Active development of business successfully manage the
Slide 6: Major innovation trends impact the industry and create opportunities and challenges for (re)insurers
Innovation Major innovation trends impact the industry and create opportunities and challenges for (re)insurers Major innovation trends in (re)insurance Opportunities and challenges for (re)insurers Digitalisation and new technologies with impact on the risk New exposures and risks (e.g. cyber, busi
Slide 7: Munich Re fosters innovation throughout the global organisation
Innovation Munich Re fosters innovation throughout the global organisation – Strong focus on tangible business impact Significant focus on innovation … … with significant impact on business already today Innovation Innovation scouting 1 infrastructure Innovation labs Ideation Corporate partnering
Slide 8: Munich Re builds infrastructure to support innovation in the insurance space
Innovation Munich Re builds infrastructure to support innovation in the insurance space and react to new developments Overview Strategic rationale and key components Objectives for innovation infrastructure Drive innovation in the insurance space Quickly react to new developments Key components
Slide 9: Cyber (re)insurance market: Strong and long-term growth to be expected
Innovation - Cyber Cyber (re)insurance market Strong and long-term growth to be expected GWP global cyber insurance market1 (US$ bn) Driving forces/trends: 10 Digitalisation Global connectivity and interconnectedness; 8 Internet of Things (IoT) 6 Growth of virtual business models in many indus
Slide 10: Cyber (re)insurance market: Significant expansion of coverage types possible
Innovation - Cyber Cyber (re)insurance market Significant expansion of coverage types possible Already in the market ... first offerings ... not yet Privacy (Contingent) Loss of Loss or breach Cyber Property Business Product Reputational intellectual theft of data protection extortion damage interru
Slide 11: Munich Re's cyber business strategy
Innovation - Cyber Munich Re’s cyber business strategy Premium development Munich Re cyber portfolio (US$ m) Munich Re business units 191 Reinsurance 126 135 Partnership with selected cedents PI Sharing of knowledge, methodologies and data RI Hartford Steam Boiler (HSB) 2013 2014 2015 Cyber pr
Slide 12: Munich Re's value proposition
Innovation - Cyber Munich Re’s value proposition Joint product development: bespoke offering developed in accordance with market, legal and cedants’ needs Modelling: Pricing, PML calculations, accumulation control methodologies Customised white Risk assessment framework supported by label pack
Slide 13: Epidemics can happen all over the world and occur regularly
Innovation - Epidemics Epidemics can happen all over the world and occur regularly Global epidemic hotspots Infectious disease outbreaks of the 21st century 2014 – 2016 Chikungunya & Zika 2014 – 2015 Plague 2013 – 2015 MERS 2014 Ebola 2011 EHEC 2009 Swine flu 2005 Marburg virus Epidemics 2003 - ha
Slide 14: Epidemic outbreaks can affect a broad variety of industries and cause different loss scenarios
Innovation - Epidemics Epidemic outbreaks can affect a broad variety of industries and cause different loss scenarios Classification of industry exposure, e.g. Loss scenarios Impact on industry Loss of attraction Business interruption Tourism (partial BI) (full BI) Hospitals Increasing exposure
Slide 15: Past events have shown that local outbreaks can cause large losses for specific businesses
Innovation - Epidemics Past events have shown that local outbreaks can cause large losses for specific businesses 2015 2014 Tourism: South Korea & MERS1 Mining: West Africa & Ebola Over 180 infections Tourist arrivals at Seoul airports during MERS A lot of highly profitable mines in West Africa were
Slide 16: Munich Re develops bespoke solutions for specific industries covering losses from epidemic events
Innovation - Epidemics Munich Re develops bespoke solutions for specific industries covering losses from epidemic events Required capabilities 1 Focus on epidemics with inherent diversification 2 Improved historical data and risk assessment on regional level 3 Analysis of vulnerability of specific i
Slide 17: Value proposition: Strong client and regional focus supported by partnerships
Innovation - Epidemics Value proposition: Strong client and regional focus supported by partnerships facilitates new product offering Partnerships: close cooperation along the value chain with epidemic experts (e.g. Metabiota), brokers, corporates of different industries and public sector Produc
Slide 18: Key takeaways
Key takeaways 1 Global reinsurance landscape 2 Munich Re strategy Market environment remains challenging; Munich Re perfectly positioned to manage the reinsurance pricing is stabilising current market environment and adapt its business model to market changes 3 Munich Re innovation 4 Munich Re exper
Slide 19: Disclaimer
Disclaimer This presentation contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the a