Munich Re nonetheless optimistic on China prospects

Munich Re continues to view China as a key market, providing promising enterprise alternatives regardless of the advanced geopolitical panorama.

In an interview with China Each day, Joachim Wenning, Munich Re’s chair of the board of administration, mentioned that the agency, which has operated in China for twenty years, anticipates that its Chinese language operations might turn out to be a extra important a part of its international enterprise portfolio over time. The corporate is hopeful that its presence in China would possibly finally surpass different markets.

In China, Munich Re information an annual premium revenue of roughly €2 billion euros ($2.19 billion), a determine that continues to develop. The rise is attributed to the potential for a wider vary of dangers in China, notably these associated to pure disasters like floods and earthquakes, to be insured and reinsured.

The Nationwide Monetary Regulatory Administration, although not offering an official estimate, acknowledged in November that the disaster insurance coverage enterprise in China is experiencing a progress section. Final summer season, the insurance coverage trade paid out over €10 billion yuan ($1.39 billion) in claims to areas affected by typhoons and floods.

Wenning additionally famous rising alternatives linked to China’s progress on inexperienced applied sciences and power investments, which introduce new dangers requiring insurance coverage options.

“The necessity for reinsurance and the necessity for international experience in China is unchanged. I might even say (it) is as vivid because it ever was,” he mentioned. “It’s strategic for Munich Re to be within the financial system and out there, regionally current, which over time goes to be the biggest financial system on the earth, which over time goes to be the biggest insurance coverage market on the earth.”

Munich Re’s confidence in China can also be additional bolstered by the nation’s efforts to enhance its enterprise setting, together with higher adherence to the rule of regulation and efficient regulation by the insurance coverage authority.

The Central Financial Work Convention in December reiterated China’s ambition to create a world-class, market-oriented, law-based, and internationalized enterprise setting, strengthening the “Put money into China” model.

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