Natural catastrophe loss trends in Europe have reinforced the need to maintain the risk balance reset achieved at renewals in the past two years, a Munich Re senior executive has said.

Clarisse Kopff, the board of management member responsible for non-life reinsurance in Europe and Latin America, said the region has experienced high natural peril losses since 2021, including from storms, hail, floods and wildfires.

“Where there is an increasing trend of these losses materialising every year, then these should be covered primarily at the original level, from primary insurers,” she told a media briefing in Baden-Baden. “In that sense, we are not willing to let go, and we are not willing to be challenged on the reset we have operated in 2022 and 2023 with our clients when it comes to higher attachment points, when it comes to more clear wordings, when it comes to the prices we have achieved. It’s important to us that we keep this balance.”

Ms Kopff said reinsurers’ role is providing cover for the peak perils, and recent events such as hailstorms point to a continuing need to reassess the balance in some countries.

“There will be even further adjustments needed in some of the markets out there,” she said.

Global natural catastrophe losses are regularly topping $US100 billion ($150 billion), and this year’s intense hurricane season could mean the threshold is crossed again this year, she said.

Munich Re says it continuously builds on its natural catastrophe expertise and is capturing relevant climate change trends in its risk models.  

Reinsurance sector supply has been moderately increasing following stronger returns on equity last year, while demand in Europe is increasing in areas including property and cyber.

“In all lines of business, we see good demand, strong demand, and we are happy and ready to accommodate it providing the terms and conditions we get adequately reflect the risk we are taking,” Ms Kopff said.