Munich Re banks on China market

Nikolaus von Bomhard, chairman of the German reinsurance company Munich Re, speaks at the general meeting at the International Congress Center Muenchen (ICM) in Munich, Germany, April 30, 2014. [Photo/IC]

China is the most important market and also the fastest growing one for Munich Re, the world's largest reinsurance company, the company's top management said on Tuesday.

"Compared with political and economic uncertainties globally, the situation in China is much better. And we've had all lines of business here, ranging from reinsurance, primary insurance and healthcare," said Nikolaus von Bomhard, chairman of the Board of the Management of Munich Re.

Meanwhile, the launch of the China cabinet's 10 initiatives to boost the development of insurance sector offer more growth potential for us, according to Bomhard.

Munich Re expects moderately increasing demand for reinsurance, driven by growth markets and greater need for innovative solutions to new risks.

The company believes that there will be a moderate rise in demand for property-casualty reinsurance. In the highly developed markets in Europe and North America – which already have large premium volumes – it anticipates growth of 1 percent in each of the next three years.

In Asia-Pacific and Latin America, the growth forecasts are 3 percent and 4 percent respectively, but starting off from a much lower level. This growth is being fuelled partly by increasing market penetration and rising values of material assets, particularly in emerging markets.

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