Munich Re has hit out at politicians who insist insurers should pay for virus-related claims that are excluded in policies, describing the action as “incompatible with the principles of the rule of law”.

The reinsurer is the latest industry company to fight back against the growing international political pressure on insurers to accept the losses. US lawmakers have been extremely vocal on the matter, with a number of states already looking at introducing legislation to force insurers to pay for pandemic-related business income losses.

The issue has also taken a high profile in the UK, where politicians and media outlets have become involved in campaigns to force insurers to pay COVID-19 related business interruption claims.

“Reliability is a virtue Munich Re holds very highly, and there are things which we too must be able to rely upon, including the rule of law,” Munich Re Chairman Joachim Wenning said last week.

“Retroactive intervention in contracts is incompatible with the principles of the rule of law, and would severely damage the foundations of insurance and hence its benefits to progress and growth.

“We are relying on governments not to call these fundamental principles into question.”

Mr Wenning, who made the comments at last week’s online AGM, says the group is in a “solid economic position” to weather the fallout from the pandemic crisis.

“The probable short and long-term costs of the pandemic are substantial. But for Munich Re, these will stay financially manageable.”