Munich Reinsurance is one of the leading reinsurers of the world and the company is based in Munich, Germany. Before discussing further about what this company does, let us first get a gist of what reinsurance is all about.
What is reinsurance?
Reinsurance is a form of insurance which is purchased by an insurance company. In this form of insurance, the insurance company buying a reinsurance policy would be allowed to remain solvent even after they have faced major claims for several events including but not limited to disasters and calamities.
While the key aim of reinsurance is risk management, it can also be used for tax mitigation propose too. The company which purchases the reinsurance policy would have to pay a premium to the insurer who would pay a share of the claims as per chosen terms of agreement.
The insurer company might either specialize exclusively in reinsurance policies or could be a general insurance company as well.
What does Munich reinsurance offer?
Munich Reinsurance has their clients spread worldwide. They offer reinsurance polices and at the same time also offer advice on different forms of insurance business as well.
The ERGO group is their primary insurance unit and they write all possible types of life and health insurance. They deal in different kind of property and casualty insurance as well.
Calamities and disasters
As we have mentioned before, one of the main aim of reassurance is to help in casualty insurance. Owing to the excessive exploitation of the environment and the anthropogenic activities, the stable balance of the ecosystem has been disturbed. This in turn has led to an increase in the natural calamities.
2018 was the fourth costliest year since 1980 as far as amount of insured losses was concerned. The year started with several hurricanes. Then the occurrence of several floods, cyclones, earthquakes, and fires further ended up making the situation terrible.
The net economic impact was 160 billion USD and out of this whopping amount, 80 billion USD happened to be insured. No doubt, having an insurance cover ends up acting like a cushion for the damage which is inflicted. However, as it is hard to foresee such disasters; even the insurance companies face the risk of turning insolvent. This necessitates the need to opt for reissuance cover.
These statistics end up giving us an incentive to opt for sustainable model of living and choosing the renewable forms of energy like solar power because if the right actions are not taken at the earliest, the carrying capacity of earth might be revoked and life may cease to exist on this unique planet.
Munich Re and PV projects
Munich Re has been associated with the task of offering insurance to several PV based solar projects. Wuxi Suntech, the PV model manufacturing unit of SFCE managed to secure insurance from Munich Re so as to support the 25 years module warranty scheme.
Astronergy, another company dealing in solar panels too applied and qualified for insurance at Munich Re. Adding to this list is IREX which needs to obtain tier 1standard of the new energy finance ranking system by Bloomberg.
Green Tech Solutions which is a part of Munich Re specializes in offering insurance to special enterprise risks that cover PV projects.