
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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net 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 info@risk.net
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 info@risk.net
More on Risk management
Ion cyber outage continues as banks rely on workarounds
ABN Amro, Macquarie, RBC among firms hit; ransom deadline tomorrow, but service may be down for days
Grim repo warning spotlights BNP Paribas booking model
Federal regulators may be targeting French bank’s Paris-based book of US Treasuries
Lifetime achievement award: Stephen Kealhofer
Risk Awards 2023: KMV co-founder helped usher in a new era of credit risk analysis – at banks and investors
Risk Awards 2023: The winners
BNP Paribas takes top derivatives prize, lifetime award for Stephen Kealhofer, Nomura wins rates
Markets Technology Awards 2023: This year’s model
Vendors are offering greater modelling flexibility. What if that’s not enough?
Op risk data: Wells Fargo walloped to the tune of $1.7bn
Also: AML breaches at Danske and Santander; Russia’s Radiotechbank scammed. Data by ORX News
Court allows lawsuit against Credit Suisse to proceed
Shareholder alleges board and senior execs breached fiduciary duties by failing to oversee risk
NSCC and OCC to enhance co-operation on large cash calls
New deal would improve management of options expiries, but will stop short of cross-margining