Munich Re America Supports White House-led Public-Private Effort on Extreme
Weather Resilience and Mitigation
PRINCETON, N.J. -- July 16, 2014
Finding ways to create broader community resilience against extreme weather
events is an important area of agreement in the initial discussion between
Munich Re America, senior White House officials, and other insurance industry
Munich Re’s NatCatSERVICE database shows that the number of loss relevant
weather-related natural catastrophes worldwide has almost tripled since 1980.
The insurance industry and its customers are directly affected by the
increasing costs of severe weather, and must work in partnership with
government agencies to drive mitigation and adaptation efforts.
“Our industry helps individuals and communities rebuild their lives after
extreme events, while federal, state and local governments provide post-event
subsidies in the form of disaster assistance,” said Tony Kuczinski, President
and CEO of Munich Re America, who participated in the discussion at the White
House on June 24. “What if financial incentives were provided to fortify
structures before an event? Clearly, this could save lives, but it would also
reduce costs in the long run.”
Munich Re also supports the reduction of greenhouse gas emissions via
innovative insurance protection for new climate friendly technologies;
incentivizing risk reduction if premiums are allowed to reflect the level of
risk; and investing in infrastructure to bolster the nation’s resilience,
leading to jobs and economic growth.
“The need to improve our national infrastructure transcends party lines and
local politics,” said Kuczinski. “It is a commitment we must make if America
is to remain a global leader and thrive in an increasingly severe weather
environment and an increasingly competitive world.”
The roundtable discussion also focused on opportunities to share data between
the federal government and insurance industry to better communicate risk to
policyholders, communities and taxpayers, as well as the importance of public
education about uninsured risk.
Kuczinski added, “An important take-away from this initial public-private
meeting was agreement around actively supporting stronger building codes and
mitigation efforts to ensure community resilience.”
Munich Re stands for exceptional solution-based expertise, consistent risk
management, financial stability and client proximity. This is how Munich Re
creates value for clients, shareholders and staff. In the financial year 2013,
the Group – which combines primary insurance and reinsurance under one roof –
achieved a profit of €3.3bn on premium income of over €51bn. It operates in
all lines of insurance, with almost 45,000 employees throughout the world.
With premium income of around €28bn from reinsurance alone, it is one of the
world’s leading reinsurers. Especially when clients require solutions for
complex risks, Munich Re is a much sought-after risk carrier. Its primary
insurance operations are concentrated mainly in the ERGO Insurance Group, one
of the major insurance groups in Germany and Europe. ERGO is represented in
over 30 countries worldwide and offers a comprehensive range of insurances,
provision products and services. In 2013, ERGO posted premium income of €18bn.
In international healthcare business, Munich Re pools its insurance and
reinsurance operations, as well as related services, under the Munich Health
brand. Munich Re’s global investments amounting to €209bn are managed by MEAG,
which also makes its competence available to private and institutional
investors outside the Group.
This press release contains forward-looking statements that are based on
current assumptions and forecasts of the management of Munich Re. Known and
unknown risks, uncertainties and other factors could lead to material
differences between the forward-looking statements given here and the actual
development, in particular the results, financial situation and performance of
our Company. The Company assumes no liability to update these forward-looking
statements or to conform them to future events or developments.
Munich Reinsurance America, Inc.
Sharon Cooper, 609-243-8821
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