Munich Re says the reinsurance market continues to be dominated by strong competition and “relentless pressure to change”, but it believes it is meeting these challenges.

In a press conference at the 60th Reinsurance Rendezvous in Monte Carlo, the German reinsurer highlighted its cycle management, customised solutions and innovation.

It says pricing pressure has eased off slightly in recent renewals, and while there is strong competition in standard business, there is consistent demand for cover of complex risks.

“We are also driving innovation forward, often working in tandem with our cedents,” board member Torsten Jeworrek said.

“Innovation in areas such as product development, data analytics, automated underwriting and supporting digital business models means, together with our cedents, we are able to take advantage of profitable growth opportunities.”

Munich Re says it has generated €500 million ($744 million) in premium from innovative products, with a particular focus on cyber coverage and epidemic risks.

“We want to meet the growing needs of our customers,” board member Thomas Blunck said. “So we are systematically expanding our expertise in assessing different types of cyber risk.”

The reinsurer is also working with partners to develop insurance solutions for companies facing financial loss from epidemics – for example, the tourist industry and airlines when there is a drastic fall in visitor numbers.

“The constant expansion of the boundaries of insurability – increasingly supported by digital technology – is an important growth driver for the insurance industry, and thus of central strategic importance for Munich Re,” the company says.

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