Digitisation is changing business model: Munich Re

The digitisation of processes, big data, transport and logistics are all factors changing insurance business models, according to Torsten Jeworrek, chief executive officer of reinsurance, Munich Re.

Speaking at the firm’s press conference in Monte Carlo, Jeworrek said that this digitisation is changing the risk landscape, as well as many other aspects of societies and economies across the world.

Jeworrek said Munich Re is playing an “active role in managing these changes” with “innovative insurance solutions, expanded services and new approaches to business”.

He stressed that true innovation is about much more than digitisation.

“We need to embrace not just technological changes, but also economic and social development, and make the risks associated with them insurable,” said Jeworrek.

Munich Re is also concentrating on analysing new or changing risks and developing customised insurance solutions, said Thomas Blunck, member of Munich Re’s board of management.

“Circumstances are changing quickly. We rely on partners and cooperation models to supplement our expertise,” he said.

Blunck added: “We often break new ground at product level, for example by insuring business interruption that does not involve any property damage. We want quickly to develop more of this type of solution.”

Last year, Munich Re generated premium of approximately €400 million  ($454 million) through such innovative products, he said.

In reference to traditional reinsurance demand, Jeworrek said that Munich Re’s capacity, expertise and customised service is “in demand”. The firm is maintaining an active cycle management strategy and offering its capacity only where it feels risk-adequate prices, terms and conditions exist.