Munich Re Wants to Increase Rates

I need the assistance of our readers to help me in understanding this.

Munich Re "sees opportunities to push through double-digit price increases following the rescue of American International Group (AIG) by the US government".

I do not know whether this applies to a specific class of reinsurance, and if so, which one.

For most other reinsurance classes such as Mortality, Critical Illnesses, Disability, Fire, Marine, Personal Accident, I do not see the justification of increase in reinsurance rates following the rescue of AIG by the US government.

Perhaps our readers who work in reinsurance company can help to explain?

More Potentials for Retakaful Business

Munich Re Retakaful thinks that there is still untapped potential in the retakaful market in Malaysia. Although currently working with all 8 takaful operators in the country, Munich Re observes that when it comes to reinsuring the risks, the takaful operators do not just cede to retakaful operators but also to conventional reinsurers.

Munich Re also thinks that governments in Asia do not have enough insurance on public assets and utilities, compared to developed countries. The countries would lose in terms of GDP when a major disaster strikes and would have to resort to raising taxes to rebuild the infrastructure.

Source: The Edge Daily

Munich Re Retakaful Launched

Munich Re has become the 2nd retakaful operator after MNRB to set up an operation in Malaysia.

Some facts on Munich Re Retakaful:

• Working capital of RM25 mil.


• Writing both general and family retakaful business.


• Malaysia office would be the hub for global retakaful activities.


• Expected to breakeven within 3 years.


• Currently 5 staff.


• CEO: Dr Ludwig Stiftl.

http://www.btimes.com.my/Current_News/BTIMES/Friday/Nation/20080404004315/Article/