Munich Re, a renowned reinsurer, has unveiled a new global parametric team dedicated to addressing natural catastrophe risk transfer solutions.
This initiative signifies Munich Re’s commitment to enhancing its offerings in the insurance industry by leveraging innovative parametric solutions, according to InsurTech Insights.
The newly formed team comprises seasoned professionals from diverse backgrounds, pooling their expertise to cater to the rising demand for parametric solutions in the insurance sector. Parametric solutions, which supplement traditional insurance models, offer rapid liquidity and coverage for risks that are often difficult to insure.
For over two decades, Munich Re has been at the forefront of this field, offering a spectrum of insurance-linked securitisations (ILS), weather-related, and parametric natural catastrophe solutions.
August Pröbstl, Head of Capital Partners at Munich Re, stated, “The unique value proposition of parametric risk transfer has attracted the attention of many decision-makers in the private and public sectors, contributing to a steady increase in insurance capacity through parametric solutions.
“As a result, Munich Re’s ambition is to bring together its parametric expertise in a dedicated unit and grow its share of parametric business, while helping to reduce protection gaps and enable its clients to become financially more resilient to natural catastrophe risks”.
Rene Mück, Global Head of Parametric NatCat, added, “While the initial focus will be on natural catastrophe risks, especially in an era of climate change, close coordination and collaboration with Munich Re units offering weather derivatives, corporate parametric solutions along the agricultural and other industrial value chains, as well as epidemic risk solutions, will enable us to offer our clients a full range of parametric risk transfer solutions.
“We are ready and very much look forward to further enhancing our collaboration with our clients and business partners in the provision of parametric risk transfer solutions.”
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