Munich Re sees cyber market share falling as market booms

Munich Re expects see its massive market share in cyber drop off if the cyber market continues to grow as anticipated.

Currently, Munich Re writes about $1.4bn of cyber business, which gives it a market share of about 14% in a market with an estimated size of about $10bn - a figure that Munich Re expects will double to $20bn in the next four years.

“Over time, the market will increase. But our share in cyber, over time, if this market growth should materialize, will shrink. Because at the end of the day, there’s no insurer in the world in any line of business or segment with a 10% to 15% market share,” said Torsten Jeworrek, who heads up Munich Re’s reinsurance division, 

Jeworrek said Munich Re benefited from being “one of the early movers” in cyber, a line that has been consistently profitable for the reinsurer. It does not have a market share target.

Munich Re has over 100 cyber underwriters and relationships with tech companies that support its underwriting.

Jeworrek also warned the re/insurance industry “might lose relevance” if it fails to provide sufficient cyber products to meet demand. He said that markets in Europe and Asia are seeing demand develop strongly and are gradually catching up to the US, which remains by far the biggest cyber market in the world.