In order to be able to offer clients lasting reinsurance protection and to safeguard the company’s economic stability on an enduring basis, it is absolutely essential to navigate a path through risks in a forward-looking manner and to take account of all relevant factors – economic, environmental and social. Hannover Re’s expertise in appropriately evaluating risks is correspondingly strong. The parameters and decisions of the Executive Board with respect to the risk appetite of the Hannover Re Group, which are based on calculations of the company’s risk-bearing capacity, are fundamental to the acceptance of risks. An active system of risk management facilitates a transparent overview of the current risk situation at all times. The risk landscape of Hannover Re encompasses the following risks:
- underwriting risks in property & casualty and life & health reinsurance,
- market risks,
- counterparty default risks,
- operational risks,
- other risks such as reputational and liquidity risks as well as strategic and emerging risks.
With regard to the topic of sustainability, emerging risks play a particularly important role because the content of such risks cannot yet be reliably assessed with respect to the portfolio of underwriting business. They are identified and monitored by Hannover Re's internal working group on "Emerging Risks & Scientific Affairs". Emerging risks include, among others, risks in connection with large cities and urban conurbations as well as risks associated with pandemics, the use of nanotechnology and increasingly widespread digitalisation / cyber crime. For selected risks the company has set up working groups that apply specific analytical methods and make long-term observations.