The growing use of artificial intelligence and the threats posed by cyber risks are fundamentally changing the risk landscape. Although cyber risks currently present one of the greatest business risks, uptake of cyber insurance remains low.

The increasing professionalism of attackers, coupled with a risk landscape which is becoming ever more complex due to artificial intelligence, geopolitical tensions and systemic interdependencies, is driving up the costs of cyber crime even further. Studies by Munich Re show that 89% of companies say they do not feel adequately protected against this. The complexity of these risks calls for independent and innovative modelling, as well as specialist AI expertise, which Munich Re is able to offer its clients.

With Munich Re as the leading provider, certain standards have now been established for cyber risks, designed to address such risks precisely and provide appropriate cover. Concerning AI risks, this development is yet to come. Demand is growing; at the same time, given the complex nature of these risks, there is a need for in-depth expertise, a keen understanding of risk and clear wording in contracts. Moreover, Munich Re’s cedants and clients also benefit from innovative products. Munich Re is thus actively contributing to the development of the market for AI risk cover.
The current market necessitates a diversified portfolio and consistent cycle management

In the current climate, a holistic understanding of risk and broad diversification are becoming increasingly important. Through its broadly diversified global portfolio, Munich Re provides its clients with stability that extends beyond the various sector-specific and regionally very different market cycles. The strength of its balance sheet, its staff’s in-depth understanding of risk and its long-term, partnership-based relationships with clients enable Munich Re to provide market-leading capacity even during periods of market volatility. This is particularly true when competitors withdraw from the market following major loss events (such as COVID-19, Hurricane Ian, etc.), as was the case a few years ago, and clients have utmost need of Munich Re’s capacity and stability. At the same time, in market phases where available capital significantly exceeds demand, Munich Re consistently prioritises portfolio quality and profitability over mere growth in gross premiums, so that it can remain its clients’ most reliable partner even in more challenging times.