Munich Re says traditional reinsurance capital is almost four times alternative capital

Munich Re said on 15 October 2026, in its statement for the annual Baden-Baden reinsurance meeting, that traditional reinsurance remains the cornerstone of capacity even as alternative capital grows. It put the ratio of traditional reinsurance capital to alternative capital at almost 4 in 2026, up from 3.5 in 2017.

The reinsurer said the long-term growth of risk continues despite years with low losses. Clarisse Kopff said periods of lower natural catastrophe losses ‘must not lead to complacency’. Munich Re said insured natural catastrophe losses in Europe have grown by an average of 5% a year since 1980, faster in the last decade, and that non-peak perils caused about 70% of European insured catastrophe losses over the past 20 years.

It also pointed to cost pressure in German motor insurance. From 2017 to 2025, spare parts costs rose 6.1% a year and medical costs 4.4% a year, while average motor premiums rose only 2.2% a year. Munich Re's 2026 cyber survey found that 89% of companies feel they are not adequately protected.

To support its case for reliable capacity, Munich Re said it deployed substantial additional capital after the 2023 earthquake in Türkiye and paid some clients within hours after the ‘Bernd’ flood in Germany, with an average payment time of 4.4 days. The statement did not give expectations for prices or terms at the coming renewals.