Opportunity management
Managing risks and opportunities successfully is our core competence, as is expressed in our purpose statement: "Beyond risk sharing - we team up to create opportunities“.
According to this purpose, Hannover Re systematically monitors megatrends, new risks and developments in order to generate new business ideas and opportunities and to foster sustainable growth. It activates the innovation potential of its worldwide network of employees, experts, partners and clients and invests consistently and with focus in promising areas of activity.
For both our business fields of property and casualty reinsurance and life and health reinsurance, we specifically consider opportunities that promise access to innovative technologies. We specifically support InsurTechs in building their digital business models, which generates new premium potential for the Group. In addition, automation, data analytics and index-based products harbour growth potential and narrow the protection gap, as enhanced cost efficiency makes coverage more attractive to and accessible for larger customer groups.
Our innovation platform hr | Equarium allows InsurTechs to market their solutions directly to our clients. Our clients in turn have direct access to a pool of services and solutions, as well as business cases demonstrating successful implementations around the world. Solutions and services can be pitched on www.equarium.com.
Risk management
Through our global orientation and our operations in all lines of reinsurance we achieve extensive risk equalisation. In particular, diversification between our Property & Casualty and Life & Health reinsurance business groups enables us to effectively deploy our capital.
We manage our total enterprise risk such that we can expect to generate positive Group net income with a probability of 90% and the likelihood of the complete loss of our economic equity and shareholders’ equity does not exceed 0.03% p. a. These indicators are monitored using our internal capital model.
Our risk management system monitors changes in the risk landscape and enables us to react flexibly to internal and external factors. In 2021, a clear focus was on the COVID-19 pandemic, regulatory developments and cyber risks.
The rating agency Standard & Poor's assessed Hannover Re's risk management as "very strong", the highest rating.