Munich Re has recently revealed its plan of focusing on the growing cyber re/insurance market, with an aim of retaining its current 10% share. In 2018, the re/insurer earned premium volume of almost US $500 million from cyber coverage.
Munich Re stated that it continues to view itself as the most “active” reinsurer in the space and plans to hold on to its 10% share in the high growth line. The combined ratio for Munich Re’s cyber operations is therefore estimated to be around 80-85%, although the data for such an estimate remains incomplete.
Analysts have noted that Munich Re’s position is in stark contrast to its competitor Swiss Re, which they as extremely cautious concerning cyber business. Swiss Re considers accumulation risk to be the biggest risk, analysts suggested, and will not fully enter the market until a large event allows for higher prices.
Munich Re’s cyber coverages currently include: privacy breach liability; confidentiality breach liability; privacy breach protection; loss or theft of data; cyber extortion; network security liability; reputational risks; payment card industry data security standard (PCI-DSS); and business interruption.
