Reinsurance: "A major loss event will come - Hannover Re boss calls for higher premiums
According to the head of the third-largest reinsurer, premiums do not reflect the risks in the cyber sector. Rating agencies also warn of cyber risks.
Clemens Jungsthöfel, CEO of Hannover Rück, sees potential in cyber reinsurance business, citing increasing demand for coverage of new risks. He warns that a major cyber event, such as a large cloud provider failure or software vulnerability, could cause significant losses. Hannover Rück currently has a cyber reinsurance portfolio with €500 million in premiums.
Jungsthöfel calls for more diversification in cyber risk coverage and suggests that parametric coverage and public-private partnerships may be necessary. The company will focus on selective growth in its property and casualty reinsurance business.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
