By offering reinsurance arrangements Hannover Re helps to provide individuals and undertakings with reliable and long-term protection against a broad range of risks and potentially large losses. The Hannover Re Group transacts all lines of property & casualty and life & health reinsurance worldwide. Its products and services are optimally tailored to the individual requirements of clients and the specific conditions of each market. The ethical and moral standards that the Group sets for its own actions also make themselves felt in its products and services and in dealings with its customers. By offering tailored solutions, such as microinsurance products and covers for agricultural risks to alleviate the financial burdens associated with damage caused by drought, Hannover Re responds systematically to changing global risk structures and plays a major role in increasing insurance density, including in developing and emerging markets.
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. The active system of risk management, which facilitates a transparent overview of the current risk situation at all times and is appropriate to the overall risk profile, constitutes an essential foundation for fulfilment of these requirements. 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, liquidity or emerging risks.
With regard to the topic of sustainability, emerging risks also play a particularly important role because the content of such risks cannot 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 – also known as megacities – 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.
Along with traditional risks, environmental issues are an essential element of Hannover Re's business activities on account of the associated high risk potential – especially in property and casualty reinsurance. Minimising adverse environmental impacts is therefore an important goal for Hannover Re. With this in mind, the company is always interested in working with its customers on the development of insurance solutions specifically geared to delivering environmental benefits.
Above and beyond this, Hannover Re is committed to the goal that a financial infrastructure should not only exist in industrial nations, but can also develop in more economically deprived regions around the world. To this end, the company participates in numerous projects for so-called microinsurance solutions by reinsuring such contracts offered by primary insurers.
On the life and health reinsurance side, Hannover Re is active in the area of health microinsurance solutions. Poor sections of the population receive basic coverage for hospital treatment through state-subsidised covers offered by private and government health insurers alike. Furthermore, Hannover Re actively supports and promotes holistic lifestyle insurance concepts that are geared to insureds’ healthy living and factor this accordingly into the pricing.