The risk landscape of Hannover Re encompasses:
We make a fundamental distinction between risks that result from business operations of past years (reserve risk) and those stemming from activities in the current or future years
Emerging risks play a particularly important role for Hannover Re because the content of such risks cannot as yet be reliably assessed with respect to the treaty portfolio. It is therefore vital to detect these risks at an early stage and then determine their relevance. Emerging risks include those associated with so-called megacities as well as risks posed by pandemics, the use of nanotechnology and the rise in digitisation/cybercrime.
The internal working group on emerging risks and the natural perils risk management team also regularly examine and review the latest scientific insights into climate change. For us, as a reinsurer, climate change brings both risks and opportunities: on the one hand, we can anticipate increased demand for reinsurance services, while on the other hand the potentially elevated catastrophe risk may result in a greater financial burden for our company. Strategies for dealing with the risks inherent in such perils are of the utmost importance to our company in its reinsurance operations. It is for this reason that our department specialising in the coverage of agricultural risks and the "Business Opportunity Management" team (from 2016 onwards: "Innovation Management") work on products that can alleviate the financial impacts of climate change.