The team brings together experienced professionals from around the world to address the growing demand for parametric solutions in the insurance industry.
Parametric solutions, which complement traditional insurance models, offer post-catastrophe liquidity and coverage for risks that may otherwise be difficult to insure. These solutions enable quick determinations of recoveries based on specific perils, making them efficient tools for covering business interruption and loss of income.
Munich Re has been active in the parametric solutions space for over 20 years, offering a range of insurance-linked securitizations (ILS), weather-related, and parametric natural catastrophe solutions. The establishment of the global parametric team underscores Munich Re’s commitment to providing innovative solutions to its clients worldwide.
According to the reinsurer, the parametric solutions market is deeply rooted in its fundamental aspects: substantial risk-taking capacity, advanced risk modeling capabilities, extensive expertise in risk assessment, unmatched data resources, and a worldwide presence. Furthermore, the reinsurer emphasizes that leveraging AI, IoT, and remote sensing technologies will further enrich the development of tailored risk transfer solutions.
The recently formed division will maintain its strong partnership with Munich Re’s facultative and corporate client sectors. With the backing of a diverse community of specialists, the unit will assemble a distinguished team proficient in product innovation, catastrophe risk modeling, underwriting, and structuring. These experts boast decades of experience in advising on the execution of intricate transactions on a global scale.
August Pröbstl, Head of Capital Partners at Munich Re, explained: “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.
He continued: “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, also commented, saying: “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.
Mück added: “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.
