Munich Re’s Chief Executive Officer (CEO), Joachim Wenning has highlighted the potential of new technologies and called for the insurance industry to “keep doing what it has been doing for centuries and remain innovative.”
Speaking at the 45th General Assembly of the Geneva Association – a 90-member strong think tank designed to examine the key economic and social challenges facing the re/insurance industry – Wenning underlined the importance of cross-sector partnerships moving forward.
“There is immediate potential from data and technology and the insurance industry is set to exploit it. Joining competencies and forces will likely be key in removing limitations and improving value propositions to the customers,” said the Munich Re CEO.
As the fervour surrounding disruptive tech continues, Munich Re has joined other major players in forming new strategic partnerships and investing in Insurtech startups.
This anticipatory scramble for a decisive edge in the market is set to create improved products more holistic in helping manage policyholders’ risks, subsequently generating a high-volume of new data and driving a reduction of insurers’ loss ratios.
However, Wenning stated, “It still remains to be seen how the improved predictability of loss expectations will match with core principles of insurance such as the mutualisation of risk.
“Insurers have continually pushed back the boundaries of insurability. Nowadays even extremely complex risks such as cyber, pandemics or even rocket launches are insurable,” Wenning added. “If our industry keeps its pioneering spirit, then we will be able to take advantage of the new opportunities offered by data and technology.”
