Munich Re to raise prices following AIG crisis
Munich Re plans to significantly raise premiums in the wake of the AIG bailout, saying the reinsurance market has now hardened.
Torsten Jeworrek, a Munich Re board member and chairman of its reinsurance committee, has told German media the giant company is looking at price rises “in the double digit percentages”.
He says the soft market is over. And he has warned global insurance capacity will be reduced due to AIG’s rescue, describing the impact of the rescue as similar to the terrorist attacks of September 11 2001.
Mr Jeworrek says Munich Re is also interested in buying certain AIG businesses such as specialty insurance and industrial insurance in Eastern Europe and Asia.
Torsten Jeworrek, a Munich Re board member and chairman of its reinsurance committee, has told German media the giant company is looking at price rises “in the double digit percentages”.
He says the soft market is over. And he has warned global insurance capacity will be reduced due to AIG’s rescue, describing the impact of the rescue as similar to the terrorist attacks of September 11 2001.
Mr Jeworrek says Munich Re is also interested in buying certain AIG businesses such as specialty insurance and industrial insurance in Eastern Europe and Asia.