Reinsurer is moving its marine insurance underwriting to Hong Kong
Munich Re, one of the world’s leading reinsurance companies, is beginning to consolidate its marine businesses and has chosen Hong Kong as the center for its underwriting in the Asia Pacific region. The company is following a trend that has seen many insurance and reinsurance companies separate their marine businesses from the traditional property casualty sector. Companies are beginning to be affected in changes in the marine sector and are looking to provide better coverage options to organizations that need their products.
Changes in the marine market call for better reinsurance products and services
According to Munich Re, basing its marine underwriting in Hong Kong puts the company in an ideal position to meet the changing needs of the Japanese, Chinese, and South Korean markets. The company will maintain its current businesses in the marine sector, but will be working to adapt to changes in the market in order to better meet the needs of its customers. Munich Re does not intend to expand further into the traditional hull and cargo coverage space, however, due to intense competition that has entered into the market.
Company plans to bring niche products to under-represented markets
Munich Re is looking to bring greater expertise and niche products to the region. Many of the products that the company will be offering have not been available in the region for several years. Some of this coverage will involve natural disasters, which Munich Re sees as an under-represented sector in the Asia Pacific region. The reinsurer notes that the marine insurance space has evolved over the past few years and many of the products being offered by insurance companies may not account for new risks that exist in this space.
Marine insurance could account for a larger portion of Munich Re’s premiums this year
Last year, Munich Re brought in some $200 billion in reinsurance premiums. Of this, approximately $2 billion came from the marine insurance space. The marine insurance space could account for an even larger portion of the company’s premiums in the coming year, as it begins providing new products to the organizations operating in the region.