
Insurance risk needs complete rethink, says Munich Re
But the reinsurer is still at the very early stages in determining exactly how it would alter its risk management modelling, contract exemptions and premium increases in the wake of the terrorist attacks. “The dimension is completely different and we not only have to think about terms and conditions, but also other things like what can be covered, how it can be covered, self-retentions, and so on,” the spokesperson said.
She added that Munich Re is likely to increase the amount of risk it can lay off in the capital markets. “Capital market solutions are more attractive,” she said.
Munich Re, whose loss-burden from the attacks represents 11.5% of its Eur18.3 billion in reinsurance premiums last year, said the losses were “by far the largest” in the company’s history. "Our conservative [loss] estimate includes all conceivable scenarios. Even against the background of the overall situation that is now becoming clearer, and the ensuing very considerable impact on results, we still expect to be able to pay a dividend of Eur1.25 per share for the business year 2001," said Munich Re chairman Hans-Jürgen Schinzler.
Given the unclear picture related to event definition and the full impact of the terrorist attacks, Munich Re said it has incorporated a buffer figure to cover uncertainty in liabilities in its latest loss figures. It said it had revised upwards its earlier estimates due to better information about adjacent building damage and business interruptions in the downtown Manhattan area.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Risk management
Risk management
Union beckons for the three quant tribes
Studies may be deferred, but future for grads is bright, argues UBS’s Gordon Lee
Receive this by email