Munich Re has predicted largely stable renewals for its portfolio despite the overall economic situation remaining “clouded by uncertainty”.

In a report coinciding with the annual Reinsurance Rendezvous in Monte Carlo, the German reinsurer says reinsurance is still indispensable for many primary insurance clients.

It expects “tangible growth” in the global insurance industry, particularly in Asia’s emerging markets, which will also benefit reinsurers.

However, competition will remain high, with investors such as pension funds increasingly buying into the securitisation of insurance risks.

“For proportional business, Munich Re expects that in the renewals at January 1 the primary insurance [prices], and thus also reinsurance prices, will remain largely stable, chiefly due to the still comparatively low interest rates,” the company said.

“In its other business segments, Munich Re also predicts no significant changes in prices and conditions.”

The company believes it is well positioned for upcoming negotiations.

Board member Torsten Jeworrek says broadly diversified reinsurers such as Munich Re offer clients “far more than just capacity”.

“We demonstrate this particularly in the case of complex risks such as large industrial risks, and also in segments that are not standardised, such as liability, agricultural reinsurance or aviation,” he said.

The annual Reinsurance Rendezvous, which has brought the major industry players together since 1957, runs until Thursday.