A recent AM Best report indicates that Munich Re utilizes retrocession less extensively than its peers among the “Big Four” reinsurers, which include Swiss Re, SCOR, and Hannover Re. While both SCOR and Hannover Re have historically relied heavily on retrocession, Swiss Re has recently increased its retrocession use. Munich Re, in contrast, leans more towards traditional reinsurance strategies, although all four companies engage in the insurance-linked securities market as part of their retrocession approaches. The report highlights that these reinsurers are increasingly sponsoring catastrophe bonds to address emerging risks, particularly in the realm of cyber security.
