Marine Leading through expertise and flexible solutions
From global logistics to offshore energy, marine insurance involves some of the most complex and challenging risks in our industry. The vast array of factors is not only difficult to assess, but also constantly changing. Staying on course demands a comprehensive overview and a forward-looking approach. With the experience and know-how of Munich Re as your radar and our solidity as your anchor, you are equipped to master these challenges – securely, sustainably, profitably.
Your advantages at a glance ubstantial financial capacity S from a global leader With the solidity of Munich Re behind you, you can fully realise your company’s potential. In-depth product knowledge Launch products and manage your portfolio more efficiently and profitably, backed by our insights into marine covers of all types. A strong team of interdisciplinary experts at your side Our marine insurance specialists draw on vast experience and technical resources to give you the support you need, when you need it. upport for unconventional covers S Take advantage of our experience in emerging risks and develop innovative covers. State-of-the-art risk modelling and research Services like systematic risk modelling, research and portfolio analysis support your long-term business success.
A view beyond the horizon
Munich Re had begun supporting clients in understanding and addressing the threat. More recently, our experts have provided insights into how a US trade embargo can lead to indemnity risks for EU-based insurance companies. Our innovative solutions include covers for increasingly far-reaching risk scenarios, such as large-scale offshore oil spills. In addition, Munich Re’s nat cat modelling expertise and technologies have proven a valuable asset for all types of marine clients.
Munich Re is a global reinsurance leader with substantial resources dedicated to the marine segment. With an annual premium volume significantly exceeding €1bn and a highly specialised crew of more than 100 experts worldwide, marine is an important area of our business. And this commitment is recognised: internationally leading insurers and specialised brokers rely on our support in mastering many of the world’s biggest marine risk transfer and management challenges. Our approach encompasses far more than traditional reinsurance products – and our view extends far beyond the immediate horizon. Because with hazards including natural catastrophes such as the severe earthquake and tsunami in Japan, major man-made loss events like the explosion on the oil drilling rig Deepwater Horizon in the Gulf of Mexico, and special maritime loss phenomena like piracy all entering into the equation, each set of marine insurance needs is individual. That is why we specialise in developing precisely t ailored solutions that significantly enhance the client’s security and capacity to generate value. Our interdisciplinary team of qualified and experienced underwriters, claims handlers, actuaries and consultants has a strong track record of identifying new risks, even before they loom on the horizon. Ahead of the emergence of piracy as a widely recognised hazard in international shipping, for example,
These qualities add up to a decisive competitive advantage for specialised insurers and brokers operating in the marine segment. In fact, our clients have successfully used our input not only to avoid potential risks, but also to create new covers, such as a special marine consequential loss policy. With Munich Re on board, you can stay on course under challenging conditions – and safely navigate even in rough seas.
Voyages of discovery In line with Munich Re’s commitment to innovative and sustainable technologies, we continuously explore cutting-edge solutions and the new risks they involve. Our comprehensive support ensures the feasibility of offshore wind farms, thus helping shape the renewable energy business. From planning and construction to long-term operation, Munich Re experts have the know-how and experience to help make visionary projects reality.
Navigating obstacles Of course, it is not always smooth sailing in marine business. But with Munich Re, you will not be forced to abandon your voyage when you encounter obstacles: we put our knowledge to work in cooperation with you to keep your project moving and help you reach your destination. Volatile, complex, highly individual – if the marine risk challenge is beyond the norm, Munich Re is your first port of call. Because specialised marine solutions are our day-today business. Drawing on our global network of experts, we consistently develop targeted treaty and facultative responses to multifa ceted single event, cumulative and multiline risk exposures.
Services to put wind in your sails
We place great value on direct communication between clients and the Munich Re marine insurance experts they have grown to know and trust. To keep the information flowing at all times and across all geographies, we maintain the secure internet portal connect. munichre. You can take advantage of this dialogue platform to access current schedules (e.g. cargo war and strikes), marine questionnaires and calculation tools. And of course it is an excellent channel for consulting with your Munich Re partners, requesting infor mation and ordering publications.
Anchored in financial solidity
The solutions we provide are backed by comprehensive services. Technical consulting, facultative services, risk management and risk modelling – even of entire client port folios e.g. in connection with the requirements of Solvency II – complement our product offering and enhance our clients’ exposure situation in the long term. In addition, we hold seminars within the various markets we serve as well as training for individual clients on a regular basis. Our Marine Consequential Loss/Marine Penalty Seminar and our Marine Seminar Workshop, which includes optional field visits to ports and factories, are examples of our current offering. To keep you up to date on marine risk topics, we produce an array of research and analysis publications, available on request to clients for download or as printouts.
Publications Piracy – The threat at sea takes on a new dimension Order number 302-06152 Topics Geo – Natural catastrophes 2010 (annual update) Order number 302-06735 © 2009 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107 80802 München Germany Order number 302-06152
Munich Re newables – Our contribution to a lowcarbon energy supply Order number 302-05955
Knowledge series
Piracy – The threat at sea takes on a new dimension Munich Re Marine
Our track record speaks for itself: again and again, clients have been able to count on Munich Re for swift and uncomplicated claims handling, even in cases of extreme losses. And because Munich Re is built on a tradition of long-term business relationships in a spirit of partnership, you can rely on us to remain at your side after large-scale payouts. In the wake of powerful hurricanes such as Katrina, Rita and Ike in recent years, for example, primary insurers turned to us for additional mid-year backups. Throughout the financial crisis, we have advised clients on strategies to protect their capital and maintain business viability. Supporting clients in rough seas is simply a part of our crew’s approach to business.
A reach as wide as the seven seas
Our services at a glance – Secure client internet portal connect.munichre – your direct connection for ongoing dialogue – Ship research support (e. g. fleet details, characteristics, movements, ownership) – Risk modelling, including accumulative risks – expert evaluation of your exposure – Natural Hazards Assessment Network (NATHAN) comprises two online modules (Single Risk Online and NATHAN Port folio Risk Online) from our NATHAN Risk Suite. Available exclusively to registered clients, it uses high-resolution maps and satellite images for better identification of individual risks at any location worldwide.
Wherever you are based, whatever area of marine business you are in, Munich Re is there for you. With our global stance and local insights, we are a perfect fit for internationally operating companies in the marine segment. Talk to your Munich Re partners, and find out more about what we can do for you.
– Marine Consequential Loss (MCL)/ Marine Penalty (MP) calculation tool – designed to evaluate MCL and con tractual MP exposures and calculate a risk-based premium rate – Claims consulting – practical hands-on support based on specialised marine reinsurance and direct marine insurance knowledge as well as legal expertise and nautical experience
Present in all markets ARCTIC
London Madrid
Munich Zurich Milan
AT L ANTIC New York Princeton
PACIFIC
OCEAN
Seoul Beijing
Mexico
Tokyo PACIFIC
Hong Kong Caracas Bogotà
INDIAN Kuala Lumpur Singapore
São Paulo
OCEAN
Munich Re marine underwriting location
OCEAN
Port Louis Johannesburg
OCEAN
OCEAN
Auckland
Your contact partners
Munich Re marine business at a glance Cargo/specie/fine art Marine hull and machinery Offshore energy Protection and indemnity (P&I) Marine liabilities
Marine
Cargo/specie/fine art Today’s globalised supply chains and vast concentrations of value make marine cargo risks extremely challenging to accurately assess – especially when accumulative loss risks are included in the equation. As the global leader in marine cargo reinsurance, Munich Re has the experience and resources to help you turn these challenges into profitable business.
The frequency of nat cat events in recent years, coupled with acts of piracy and terrorism, place special underwriting demands on cargo/ specie/fine art insurance. The risk situation of many shippers and logistics companies is further complicated by EU, UN or national embargo and sanctions legislation. At the same time, worldwide market conditions such as overcapacity leading to margin compression – falling rates, negative technical combined ratios with losses, acquisition and administration costs exceeding total premium income – make writing profitable marine cargo business increasingly difficult. With global reach and regional expertise, the Munich Re cargo team helps keep you on top of developments. Shipshape Munich Re counters these variables with systematic risk modelling. This places us in a strong position to manage our own portfolios sustainably as well as to support you in optimising your risk management and accurately defining your risk appetite. © 2011 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, 80802 München, Germany Tel.: +49 89 38 91-0 Fax: +49 89 39 90 56 Order number 302-07136
Technical underwriting, as opposed to an overall bottom-line approach, has been and remains one of our key strengths – a strength we share with
our clients. This results not only in fair pricing along the value chain, but also in enhanced transparency, as demanded increasingly by shareholders and regulatory authorities. The Munich Re team includes experts with experience in a wide array of disciplines – from shipping, marine insurance and legal subjects to nat cat and geo risk modelling. Based on this know-how, we deliver targeted solutions such as ocean marine and inland transit insurance or project cargo and marine consequential loss (DSU/ALoP) covers backed by the substantial financial strength of Munich Re. Your benefits – Leading risk management support – Systematic risk modelling – Nautical and technical consulting – Munich Re’s Geo Risk Rervices – Seminars and workshops – Targeted covers Your team Wherever you operate, whatever your marine cargo/specie/fine art exposures, the Munich Re marine team is there for you. Let’s talk!
Marine
Hull and machinery Marine hull insurance covers a wide spectrum of hardware – and exposures. With vast experience in hull and machinery business and a network of experts to analyse and evaluate even the most challenging individual risks, Munich Re provides key support for your hull insurance activities.
Today’s high-value, technologically sophisticated vessels demand tailored hull insurance solutions, backed up by in-depth marine risk and nautical engineering knowledge. Especially when innovative vessels and equipment are involved, hull and machinery underwriting takes highly specialised and up-to-date expertise. With our experts at your side and Munich Re’s substantial financial strength behind you, you can take on these complex marine risks – successfully and sustainably. On course Munich Re can deliver targeted reinsurance for any line of marine hull business – including special segments like builders’ risks, pleasure craft and fishing vessels. At the same time, there is no denying that marine hull is a very demanding business. Consequently, we adhere to a policy of strict technical underwriting and adequate pricing – as a company built on sustainable business, Munich Re regards the current pressure on original rates and the softening of terms and conditions with
© 2011 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, 80802 München, Germany Tel.: +49 89 38 91-0 Fax: +49 89 39 90 56 Order number 302-07137
healthy scepticism. Moreover, we avoid inclusion of mobile offshore units under ocean hull contracts, a tendency we have observed in the marketplace over the years. Your benefits – Comprehensive nautical engineering and risk knowledge at your disposal – A service-centred approach – Solid financial backing – A global network of experts – Long-standing experience in all marine hull lines in various markets Your team Wherever you operate, whatever your marine hull and machinery exposures, the Munich Re marine team is there for you. Let’s talk!
Marine
Offshore energy Cutting-edge technologies and high-value assets in extreme environments – by nature, upstream energy exploration and production bring together complex risk factors. Munich Re’s offshore energy experts deliver the engineering experience and risk knowledge you need to insure even the most innovative and exacting upstream energy projects.
With demand for fossil fuels and hydrocarbons for various industries continuing to rise, companies are undertaking increasingly challenging deep-sea drilling projects. This trend is also driving rapid technological innovation, along with exploration. Munich Re can support you in insuring these and other enterprises, with tailored reinsurance solutions and far-reaching industry expertise. Full steam Our Munich Re Underwriting Platform pricing tool enables us to calculate experience and/or exposure rates for individual portfolio compositions based on loss history, premium and portfolio development, actual portfolio structure and changes to be expected. Each individual cover within an offshore energy policy package must be underwritten on a stand-alone basis and accurately priced – without “cross-subsidising”. Accordingly, we rate physical damage, natural catastrophe and liability risk elements separately and offer separate treaties, or reassemble these modules into one price. This clear split of the package coverage is © 2011 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, 80802 München, Germany Tel.: +49 89 38 91-0 Fax: +49 89 39 90 56 Order number 302-07139
fundamental to achieving transparency and an indispensable precondition for calculating an adequate price for the insurance and reinsurance product. We know these information requirements are demanding – but full transparency is the key to success. Your benefits – High-performance covers for upstream oil and gas exploration and production, including drilling and operation – Builders’ risk covers – A partner with top financial ratings – Experienced engineers and risk analysts at your side – Fair and accurate pricing based on sophisticated tools Your team Wherever you operate, whatever your offshore energy exposures, the Munich Re marine team is there for you. Let’s talk!
Marine
Protection and indemnity National legislation, international maritime laws, environmental liability issues – the list of variables in marine protection and indemnity (P&I) insurance is long and continues to grow. Munich Re’s marine P&I experts have the international experience and knowledge to help you recognise and anticipate complex risk exposures – and stay on course for success.
Shipowners and charterers face a daunting array of risks. Developments such as increasing public awareness of environmental impacts coupled with new and upcoming international conventions highlight the need for adequate liability insurance for shipowners and charterers. Delivering appropriate marine P&I reinsurance covers that answer those challenges is our focus. The marine P&I specialists at Munich Re are your partners in providing the specific covers your target group needs. On the lookout Based on constant and intensive dialogue, we keep abreast of your shifting liability exposures. In response to the unique nature of the P&I industry, we have established the Centre of Competence for P&I to serve P&I clubs within the International Group as well as other players in the market. Our experts closely monitor all developments in order to accurately assess the risk of change, an aspect that remains the biggest challenge in realistically forecasting claims as well as future claims inflation. And © 2011 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, 80802 München, Germany Tel.: +49 89 38 91-0 Fax: +49 89 39 90 56 Order number 302-07140
because we offer the substantial financial strength of Munich Re, you can rely on us for solid backing – especially in long-tail business like P&I. Your benefits – Ongoing expert monitoring and analysis of risk of change – Constant and intensive dialogue – A partner with top financial ratings for long-tail business – Central underwriting and claims handling in Munich – Solvency II products and consulting Your team Wherever you operate, whatever your marine P&I exposures, the Munich Re marine team is there for you. Let’s talk!
Marine
Liability Marine liability can be a broad field with many grey areas. Our approach: to shine a bright light that cuts through the fog. With leading technical knowledge and consistent underwriting discipline, we can support you in determining which marine liability products hold the greatest promise for your portfolio and which could threaten your liability book – and afford you improved visibility to stay on course for profitability.
© 2011 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, 80802 München, Germany Tel.: +49 89 38 91-0 Fax: +49 89 39 90 56 Order number 302-07138
With more and more exposures in high potential-loss areas such as environmental liability entering into the marine liability equation, a clear definition of this type of business is more important than ever to a healthy portfolio. By concentrating our risk appetite on core marine-type covers – such as warehousemen’s liability, shipbuilders’ liability, freight forwarders’ and carriers’ liability – we establish clarity, transparency and a sound foundation for sustainable business.
Along with underwriting discipline, our approach is shaped by in-depth technical and legal knowledge. When we write business outside of our core marine liability scope, we must ensure that the risks covered are clearly understood and established by all parties. Exposures defined as non-marine are analysed carefully and, under certain circumstances, covered according to the established quality standards for such specialised business.
A beacon in the fog
Your benefits
Based on our defined standards and specialised wordings, do we develop fair and transparently framed reinsurance solutions for your marine liability needs. At the same time, our experts support you in avoiding the liability exposures that go beyond what is healthy for a traditional marine portfolio.
– Transparent legal foundations – Risk management support – Expert technical consulting – Portfolio analysis – Targeted covers Your team Wherever you operate, whatever your marine liability exposures, the Munich Re marine team is there for you. Let’s talk!
© 2011 Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, 80802 München, Germany Order number 302-07113
