The global financial crisis will shift the balance of power within the finance industry towards insurers and away from banks, according to the head of Munich Re.

Chairman Nikolaus von Bomhard said in Hamburg last week the credit market crisis is likely to claim German banks among its next victims, but insurers are unlikely to need the German Government’s €500 billion ($973 billion) financial sector rescue package which passed the parliament on Friday.

Munich Re certainly won’t need any assistance, he says. “We have reduced our risky credits considerably in the past few years, which is why we are in a good position now.”

Dr von Bomhard says the insurance industry is now set to gain ground over banks and funds, which have “endemic problems”.