Download PDF version - Munich Re

Munich Re
and measures to tackle the
problems of water supply and
sewage disposal in densely
populated urban agglomerations.
For the national insurance markets
in the threshold countries – often
still in the development phase –
and for the internationally
experienced insurers and
reinsurers, these major engineering
risks represent challenges and
opportunities for offering long-term
comprehensive insurance cover,
particularly in regions exposed to
natural hazards.
The fixed link over the Öresund (road/rail,
tunnel and bridge) is an important addition
to the network of transport connections not
only between Denmark and Sweden but also
between Scandinavia and the rest of
Europe.
The Munich Re aims to extend its
leading position further and fully
utilize the business opportunities of
this growth market.
46
The reinsurance of natural
catastrophe risks
San Francisco, 18th April 1906,
5.13 a.m. local time. The violent
tremors of a catastrophic earthquake
bring buildings crashing to
the ground. Fires break out and
spread; a terrible conflagration
destroys almost the entire city.
Cost of the catastrophe: 750 dead,
250,000 homeless and damage of
US$ 350 million.
The earthquake shook the world,
and many insurers and reinsurers
did not survive their first big test.
For the Munich Re, however, the
prompt payment of all indemnifiable
reinsurance claims brought
a considerable boost to its
reputation, epitomized by the
saying of the time “Thieme is
money”.
Carl Thieme, co-founder and first Chairman
of the Munich Re Board of Management.
The Munich Re has devoted itself
for many decades to the
geoscientific analysis of natural
catastrophe risks, especially
earthquake, windstorm and flood,
and has developed underwriting
methods for dealing with them. A
particular feature of covering these
risks is the accumulation of
liabilities, because one and the
same event can cause losses