Munich Re set out its view of risk in a media release. One line of the release reads: Long-term trend of rising risks unchanged despite individual years with benign losses.
Munich Re Points to Heatwaves, Hail and Cyber Threats as Signs of Rising Risks
Munich Re says in its media release: Risks are on the rise, and this is not only evident in heatwaves and continued hail events, but also in cyber threats, persistent cost pressure and single hazards that trigger interconnected impacts.
The release then continues with this sentence from Munich Re: This underscores the value of traditional reinsurance more than ever, as longer benign loss periods do not alter the long term trajectory of these risks.
On the climate in Europe, the Munich Re release states: Rising temperatures in Europe threaten agriculture, energy production and transport infrastructure.
InsuraBeat has separate coverage of Munich Re’s half-year profit.
Munich Re Cites Insured NatCat Losses and Non-Peak Perils in Europe
The release carries this statement on periods of lower losses: “Periods of lower losses in natural catastrophes (NatCat) must not lead to complacency about the risks ahead,” says Clarisse Kopff, Member of the Board of Management.
Kopff continues in the release: “We have seen insured NatCat losses in Europe rise by an average 5% per year since 1980, with the rise accelerating in the last decade.”
On natural catastrophe losses in Europe, the release says that non-peak perils accounted for about 70% of insured losses over the past 20 years.
The climate section of the release quotes Tobias Grimm: “Understanding and modelling evolving climate-related risks remains crucial,” explains Tobias Grimm, Chief Climatologist at Munich Re.
InsuraBeat has separate coverage of Munich Re’s half-year nat cat loss estimate.
Munich Re Details Reinsurance Capital and Claims Payment After the Bernd Flood
On the balance between traditional reinsurance capital and alternative capital, the release from Munich Re says: Traditional reinsurance capital has increased relative to alternative capital from a factor of 3.5 in 2017 to almost 4 in 2026.
In its media information, Munich Re also quotes Kopff on what clients need: “Our clients need a partner they can rely on across market cycles, including when major events put their balance sheets under pressure.” The release continues with this Kopff statement: “We combine meaningful capacity with the expertise to understand changing exposures and the ability to respond when losses occur.”
On the speed of claims payment after the Bernd flood event, Munich Re’s release says: After the “Bernd” flood event in Germany, Munich Re paid some cedants within hours; on average, payments took 4.4 days.
On Munich Re’s financial results, the release states: In the 2025 financial year, Munich Re generated insurance revenue of €60.4bn and a net result of €6.1bn.
InsuraBeat has separate coverage of Hannover Re’s outlook for P&C renewals.
InsuraBeat has separate coverage of Guy Carpenter’s July property-cat renewal analysis.
Munich Re Cites German Motor Costs and a Substantial Cyber Protection Gap
Further on in the release, Munich Re’s statement on motor claims costs in Germany reads as follows: Germany from 2017–2025 is a case in point: While costs for spare parts rose at 6.1% per annum and medical costs went up by 4.4% per annum, the average premium only increased by 2.2% per annum.
On cyber risk, the release quotes Patrice Michellon: “Artificial intelligence, geopolitical tensions and growing digital interdependencies are changing both the frequency and nature of cyber risk,” says Patrice Michellon, Chief Executive for Continental Europe.
In the same quotation, Michellon refers to the company’s survey: “According to our Global Cyber Risk and Insurance Survey 2026, 89% of companies feel inadequately protected and the cyber protection gap remains substantial, including in Europe.”
On At-Bay, the release says: The acquisition of At-Bay illustrates how digital capabilities can open up new customer segments and combine risk transfer with prevention and technology-enabled services.
