The recent hard-hitting natural catastrophes have emphasised the need for re/insurers to take a global view of risk management and offer clients more comprehensive solutions for risk mitigation and assessment, said Munich Re executives at the 2017 Baden-Baden industry conference.
Hermann Pohlchristoph, member of Munich Re’s Board of Management, said; “the huge gap that still exists between economic and insured losses following natural catastrophes, particularly in emerging countries but even in highly developed countries, is evidence of the great potential that companies and countries have to improve risk management.”
Improving risk management includes taking extra steps to mitigate risk, where possible, such as designating land for development that’s not in high risk zones, or enforcing building standards to reduce earthquake damage.
The German reinsurance giant advised firms to monitor interactions on a global scale that could create business interruption risks – a growing risk to businesses and re/insurers in an increasingly interconnected world.
Munich Re said it supports its clients in measuring and mitigating risks; “in the interconnected world in which we live, risks are becoming increasingly complex,” said Pohlchristoph.
“To develop comprehensive risk management solutions to deal with them, an in-depth knowledge of risk is not enough you also need to have a holistic view of the risk landscape and to make use of the very latest technologies.”
In response to the growing interconnectivity of the global economy, Munich Re has set up a Risk Management Partners unit to develop tools to offer a more comprehensive view of risk.
For new risks such as cyber hazards, Munich Re offers a range of services alongside the traditional carrying of risk, from risk assessment and risk mitigation to data and system recovery after a loss event and improving the resilience of internet based systems.
“Our clients want and need the whole package to cover their risks as their business develops,” Pohlchristoph said, “and our aim is no less than to offer an appropriate and comprehensive solution to every need, with cooperation with partners who complement our own expertise playing an important part.”
The carrier supports its clients in risk assessment of natural events and, where losses occur, in producing loss estimates quickly with cloud based geographic information systems (GIS), decoding large volumes of data to support proactive risk management, enhance claims and portfolio management.