As of Feb. 1, 2017, Munich Re will restructure responsibility for health business by disbanding the Munich Health field of business. The reinsurer has also announced that it is redistributing responsibilities to a smaller Board of Management.
Munich Health’s reinsurance units will merge with Munich Re’s Life division, and its primary health insurance business will go to ERGO International.
The restructuring will also permit a reduction in the size of the Board of Management. Doris Höpke, who was the board member responsible for Munich Health, will now be in charge of the Special and Financial Risks division. In April, she will be given global responsibility for human resources in the reinsurance business. Thomas Blunck, a board member, will be responsible for life and health reinsurance business.
Growth and revenue goals not attained
Munich Re has had its health operations under the Munich Health brand since 2008. Munich Health’s goals regarding growth and revenue were not attained overall, said Munich Re in its announcement.
Munich Re says its restructuring aims to keep up with the trend that primary insurers are today less likely to differentiate between solutions designed for life and health insurance. “The increasing digitalisation of insurance processes, which results from the availability of large data volumes and new evaluation methods, is an important driver behind this trend. In addition, reinsurance is becoming increasingly important for capital management, and for those transactions the respective classes of business play a minor role,” explains Munich Re.