Munich Re’s market share in cyber now at just over 5%
Munich Re is set to smash the half a billion-dollar barrier in written cyber premiums this year.
The German re/insurance giant revealed that last year it wrote $473m in cyber premium.
And Torsten Jeworrek, member of the board of management, told press at the Fairmont Hotel that Munich Re’s cyber account is growing in line with the market, expanding at between 20% and 25% each year.
The total global insurance cyber market will top $9bn this year, meaning Munich Re market share can be calculated at just over 5%.
The global cyber market has quadrupled in size over the last five years.
Jeworrek outlined a clear Munich Re customer strategy.
“We cover the big industrial market. But our preference is for the SME market.
“These are the customers who need us most,” he said.
He also stressed that Munich Re was very much about services and support, rather than just offering indemnity.
The German re/insurer offers a vast array of services including legal advice, workshops and training, risk assessment, advice on silent cyber, IT services, post-incident solutions.
Munich Re also announced the release of two new digital solutions for the insurance industry and its customers – Wildfire Risk Score and Remote Industries.
Wildfire Risk Score works by collecting loss data from past wildfires and combining it with information from public sources.
A high-risk resolution map is then created with a Wildfire Risk Score between 0 and 100, with 100 being the highest score.
For example, Malibu and the mountains in Santa Monica Bay in California have a wildfire score of 100, meaning they are extremely high-risk areas.
Insurers can then use the tool to analyse risk more precisely and identify accumulations of risk in their portfolio.
Losses can be identified quickly and a start made on claims settlement.
Munich Re also released Remote Industries.
Munich Re uses aerial equipment to scan hurricane zones before and after the devastation.
Artificial intelligence algorithms combine with the imagery to estimate damage to buildings, so insurers know how bad the damage is even before the policyholder does.
Munich Re believes ‘the rapid recording of damage significantly reduces the time spent on claims handling’.
It said that first experiences following Hurricane Michael led to reduced claims expenditure and more satisfied customers.
Remote industries is currently available in the USA, including the US Virgin Islands and Puerto Rico, as well as in the Bahamas.
Jeworrek said: “We are where our clients and their industries are.
“Digital technologies enable us not only to continuously improve our products, but also to develop completely new solutions that meet the clients’ needs ever more precisely.
“In this way, we help ensure that insurance will continue to be a stabilising factor for people and business in the future.”
Elsewhere in the business, Jeworrek revealed that rates had increased positively in almost all areas of the business.
He said the rate increases were triggered by a number of years of price reductions and increasing loss trends.