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Andreas Pollmann (Munich Re)

We have clearly defined risk appetite and pay attention
to transparency in policies & portfolios

Andreas Pollmann, Client Management Executive, Divisional Unit
Middle East/North Africa (MENA) at Munich Re, has always put
clients first and is heavily involved leading the business and positioning it
to accelerate its focus on executing against key strategies due to its strong
relationships with clients, regional and international markets and a
proven track record of leadership. Exercising full transparency and dis-
closure in all of its business dealings and evaluating clients’ risks on the
basis of sound underwriting principles while maintaining competitiveness
have always been the core values of Munich Re. In his interview with Al
Bayan Magazine, Pollmann summarized the effects of Covid-19 pandem-
ic on the reinsurance sector and expressed his point of view regarding
cyber. He further gave us an idea about their top risk concern.
Below is the Q & A.

* Covid-19 has accelerated changes in the insurance industry in so Greater loss preparedness and climate protection
many different ways. How did you adapt to these changes and what a matter of urgency
is your business model to deal with the current circumstances and

to ensure the current and future success of your company? * What are your top risk concern?

- As a globally active company, we are following the current develop- - Worldwide, natural disasters caused substantially higher losses in 2021

ments with concern, but without panic. Our thoughts are particularly with than in the two previous years. Based on provisional data, storms, floods,

all those directly affected, because the illness and especially the loss of wildfires and earthquakes destroyed assets worth US$ 280bn, of which

a loved one of course far outweighs any potential financial conse- roughly US$ 120bn were insured. Losses in the previous year amounted

quences. As of today we can say that our operations worldwide run to US$ 210bn, while in 2019 they were US$ 166bn. Roughly US$ 120bn

smoothly and mobile working at home is an essential tool. At Munich Re, of losses were insured, which was also more than in the two previous

tens of thousands of us are also now years (2020: US$ 82bn). The

working from home. Our IT units had insurance gap, in other words
the uninsured portion, declined
Munich Re is able to offer constantto work extremely hard within a very slightly due to a higher propor-
tion of losses in the USA, but
short time to allow us to do so – with-

“ capacity to relevant businessout jeopardising our IT security. This
has been successfully accomplished was still approximately 57%.
around the world. The urge to trans- partners and we are glad to Alongside 2005 and 2011, the

form business models and introduce support the insurance industry” year 2021 proved to be the sec-
digital sales in a connected world ond-costliest ever for the insur-
became for evident for our industry. ance sector (record year 2017:
US$ 146bn, inflation-adjusted) – overall losses from natural disasters
Cyber is one of the most promising growth areas were the fourth-highest to date (record year 2011: US$ 355bn). Hurricane

of our company Ida was the year’s costliest natural disaster, with overall losses of US$
65bn. In Europe, flash floods after extreme rainfall caused losses of US$

* It said that cyber is now a matter of concern to insurers & reinsur- 54bn – the costliest natural disaster on record in Germany. Many of the

ers who would need states backing to be able to cover it. Do you weather catastrophes fit in with the expected consequences of climate

share this view? change, making greater loss preparedness and climate protection a mat-

- Cyber is one of the most promising growth areas of our company and ter of urgency.

maybe even of the whole insurance industry. By ensuring a pre-emptive Munich Re has been known to have a consistent
strategy for offering complex and adequate cyber insurance, we see this

challenge but as an opportunity for sustainable new business throughout approach & methodology
the entire industry. Our approach is based on understanding cyber risks,

assessing them adequately and making them insurable. * Global reinsurance companies have settled huge compensation

This can only be done in close collaboration between experts from insurance due to Covid-19 & natural catastrophes. Are we starting to see an

and reinsurance, clients and external partners. We have heavily invested into increase in the prices and conditions of some lines in the Middle

knowledge and expertise to develop a sustainable cyber insurance market that East and North Africa similar to the rest of the world?

translates this complex and dynamic challenge for the economy into a man- - As outlined above, the NatCat events have increased in 2021 with the

ageable insurance risk. Along with risk transfer by way of insurance, its range of consequence of a higher awareness for the protection against it. Herein,

offerings is rounded off with risk management services and security measures. the role of insurance increases. Regarding prices and conditions, Munich

We have a clearly defined risk appetite and pay attention to transparency in Re has been known to have a consistent approach & methodology – we

policies and portfolios, both for us and for our clients. We tackle strategical- price risk adequate for the underlying exposure. During this renewal we

ly the most critical topics like accumulation control, cyber war, data analyt- have seen that it is not only a question about prices and conditions, but

ics, silent cyber and many others. We do this in close cooperation with reg- actually about being able to provide capacity. As a premium reinsurer

ulators, associations, research institutions, cybersecurity companies and Munich Re is able to offer constant capacity to relevant business partners

many others to set the ground for a mature line of business. and we are glad to support the insurance industry.

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