PRINCETON, N.J.--(BUSINESS WIRE)--Finding ways to create broader community resilience against extreme weather events is an important area of agreement in the initial discussion between Munich Re America, senior White House officials, and other insurance industry leaders.
Munich Re’s NatCatSERVICE database shows that the number of loss relevant weather-related natural catastrophes worldwide has almost tripled since 1980.
The insurance industry and its customers are directly affected by the increasing costs of severe weather, and must work in partnership with government agencies to drive mitigation and adaptation efforts.
“Our industry helps individuals and communities rebuild their lives after extreme events, while federal, state and local governments provide post-event subsidies in the form of disaster assistance,” said Tony Kuczinski, President and CEO of Munich Re America, who participated in the discussion at the White House on June 24. “What if financial incentives were provided to fortify structures before an event? Clearly, this could save lives, but it would also reduce costs in the long run.”
Munich Re also supports the reduction of greenhouse gas emissions via innovative insurance protection for new climate friendly technologies; incentivizing risk reduction if premiums are allowed to reflect the level of risk; and investing in infrastructure to bolster the nation’s resilience, leading to jobs and economic growth.
“The need to improve our national infrastructure transcends party lines and local politics,” said Kuczinski. “It is a commitment we must make if America is to remain a global leader and thrive in an increasingly severe weather environment and an increasingly competitive world.”
The roundtable discussion also focused on opportunities to share data between the federal government and insurance industry to better communicate risk to policyholders, communities and taxpayers, as well as the importance of public education about uninsured risk.
Kuczinski added, “An important take-away from this initial public-private meeting was agreement around actively supporting stronger building codes and mitigation efforts to ensure community resilience.”
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2013, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of €3.3bn on premium income of over €51bn. It operates in all lines of insurance, with almost 45,000 employees throughout the world. With premium income of around €28bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the major insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2013, ERGO posted premium income of €18bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to €209bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
Disclaimer
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.
