Best Practices for Implementing an External Recruiting Partnership
16.10.2014, Mining Risks Insuring the Un-insurable? Gunter Becker
1. Ulan Bator, October 16th, 2014
Günter Becker
Courtesy Oyu Tolgoi
Risk Management and Insurance
Solutions for Mongolian Industries
2. Disclaimer
Münchener Rückversicherungs-Gesellschaft (“Munich Reinsurance Company”) is a reinsurance company organized under the
laws of Germany. In some countries, including in the United States, Munich Reinsurance Company holds the status of an
unauthorized reinsurer. Policies are underwritten by Munich Reinsurance Company or its affiliated insurance and reinsurance
subsidiaries. Certain coverages are not available in all jurisdictions.
This presentation contains forward-looking statements that are based on current assumptions and forecasts of the
management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences
between the forward-looking statements given here and the actual development, in particular the results, financial situation and
performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them
to future events or developments.
This presentation and its contents are provided to the recipient for information only on an “AS IS” basis. The recipient is not
permitted to create any distributions beyond those in the recipient’s organization who have a need for the material. The recipient
is furthermore not permitted to create any modifications, reproductions publications or to use it in any other kind for commercial
or public purposes. Neither Munich Re nor any of its affiliates nor any of its employees makes any representation or warranty of
any kind with respect to the accuracy, completeness, or applicability of this material to any recipient’s circumstances. This
material is not intended, nor shall be relied upon by any recipient, as legal, underwriting, financial, investment advisory or any
other type of professional advice. The recipient should consult with its own counsel or other advisors to verify the accuracy and
completeness of any information used and to determine its applicability to the recipient’s particular circumstances, including but
not limited to applicability of any securities law. Munich Re, its affiliates, and their employees disclaim any and all liability
whatsoever resulting from any use of or reliance upon this material that would result in any duty of any kind to any recipient, and
recipient hereby acknowledges and agrees to the foregoing terms of receipt and use of the material presented.
3. Munich RE Group
*This listing is incomplete and provides no precise indication of shareholdings.
Munich Re (Group)*
Asset Management
Primary insuranceReinsurance Munich Health
Corporate Insurance Partner
Great Lakes Reinsurance (UK) PLC
KA Köln.Assekuranz Agentur GmbH
MSF Pritchard Syndicate 318
Temple Insurance Company
Watkins Syndicate
Belgium
Munich Re Stop Loss ®
Munich Health
North America ®
11.10.2014 3
4. Outlook 2014
Munich RE Group Financials
11.10.2014 4
Gross premiums written Net resultReturn on investment
Target 20141 ~€48bn
Munich Re (Group)
Reinsurance Primary insurance Munich Health
Focus on bottom-line prevails Uplifting annual guidance
after strong half-year
performance
RoRaC target of 15% after
tax over the cycle to stand
Combined ratio Combined ratioCombined ratio
Net result Net result Net result
Target 2014 ~3.5%
(prev. 3,3%)
Target 2014 €3bn
Target 2014 ~95%
(prev. ~94%)
Target 2014 ~95% Target 2014 ~99%
Target 2014 €2.3–2.5bn Target 2014 €400–500m Target 2014 ~€100m
1 By segment: Reinsurance slightly above €26bn, primary insurance slightly above €16.5bn,
Munich Health slightly below €5.5bn.
5. Solvency and ratings
Rating agency
A.M. Best
Fitch
Moody‘s
Standard & Poor‘s
Rating
A+ (Superior)
AA- (Very strong)
Aa3 (Excellent)
AA- (Very strong)
Outlook
Stable
Stable
Stable
Stable
Last Changes
7 Sept. 2007
19 July 2005
17 March 2005
22 Dec. 2006
Ratings
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6. Present in all markets
Reinsurance activities
6
Chicago
Columbus
Montreal
Philadelphia
Princeton
San Francisco
Toronto
Bogotá
Caracas
Mexico
Santiago de Chile
São Paulo
Auckland
Melbourne
Sydney
Beijing
Calcutta
Hong Kong
Kuala Lumpur
Mumbai
Seoul
Shanghai
Singapore
Munich
London
Madrid
Malta
Moscow
Paris
Accra
Cape Town
Nairobi
Port Louis
Milan
Zurich
Amelia
New York
Vancouver
Buenos Aires
Johannesburg
Taipei
Tokyo
Atlanta
Hartford
Dubai
11.10.2014
7. Global Clients, Lloyd's, Munich Re America,
Munich Reinsurance Canada Non-Life Group
Structure of the reinsurance group
Global Clients/North America
Europe/Latin America
Germany, Asia Pacific and Africa
Europe (except Germany), Latin America
Germany, Middle East, Africa, Asia, Australasia,
Greater China, Southeast Asia
Special and Financial Risks
Corporate Insurance Partner, , Aviation and
space, credit and bonding, enterprise and
contingency risks, New Re Zurich, Great Lakes
UK, Munich Re Capital Markets, Agro
Corporate Underwriting
Corporate Underwriting and Knowledge
Networks
Life
Life reinsurance worldwide
Corporate Insurance Partner
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8. Lines of business: pooled knowledge and expertise
Corporate Insurance Partner
A. Pröbstl
General
Property
D. Herrenpoth
Energy
A. Wimmer
Engineering
S. Lämmle
Casualty
M. Hillmann
Special
Enterprise
Risks
NN
Client
Management
J. Sirr
Claims &
Operations
A. Studener
Liability NA
S. Schmitt
Europe/LA
P. Steenwegen
North America 2
B. Hartinger
London market2
A. Fox
Power & Utilities
R. Abt
Construction
A. Dosch
Claims 2
A. Knoerchen
Operations
T. Dierkes
Wording |
Globalisation
F. Montjoie
Mining
G. Becker
US market1
E. Leibrock
1 Part of Munich Reinsurance America, Inc.
2 Part of Great Lakes Reinsurance (UK) PLC
3 Part of Münchener Rückversicherungs-Gesellschaft, London Branch
4 Part of Münchener Rückversicherungs-Gesellschaft, Singapore Branch
5 Part of Great Lakes Reinsurance (UK) PLC
North America 1
C. Wiegele
Oil & Gas
H. Lund
including
London desk²
Claims 1
S. Hirlinger
Liability
E/APA-LA
S. Hüskes
London market3
W. Martini
US market1
R. Beck
Spec. Lines2
P. Woods
Singapore4
S. Vetters
Green Tech
Solutions
M. Schrempp
Art & Financial
Solutions
A. Fraser5
New Risk
Solutions
C. Storer
Strategy &
Analytics
W. Boffo
Claims handling
& Monitoring
C. Schmid
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10. Agenda
What makes Mining risks special ?
Dealing with „Mother Nature“
A mine is never „Ready to Use“
What is the „Insured Property“
Information Required
Company Information
Risk Information
Risk Management Information
Requested Coverage
„Popular Losses“
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11. Dealing with „Mother Nature“
Mines are particularly exposed to natural perils
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12. Dealing with „Mother Nature“
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Mine location is determined by „Mother Nature“
High Altitude
(Yanacocha Gold Mine – Peru)
Diavik Diamond Mine
(Rio Tinto - Canada)
13. Dealing with “Mother Nature”
Climate
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Diavik Diamond Mine, Canada
– Rio Tinto
14. Dealing with “Mother Nature”
High Altitude
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Some mines are
located high up in the
mountains
Examples:
Grassberg 4200m
Antamina 4100m
Yancoccha 4200m
Pascua Lama 5200m
(Grassberg is located in Indonesia,
the others are in the Andes)
17. Never Ready - Constant Change
A mine is never complete – is constantly under construction
Hotel Blue Sky
Ready to use
Batu Hijau Mine, Indonesia
Being worked on
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21. Do you know what that is?
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Miners have a special language
HD-Truck Shovel
Shearer
Slope
Bench
Shaft
Gob
Dozer
Crusher
Anchor
22. 11.10.2014 22
And Underwriters know that…..
The Objective is to find a risk adequate and sustainable risk transfer solution for you
Mining Risks are very special Property Risks
The requirements stated in the following reflect the information
needed by Underwriters at Munich RE Risk Solutions (Mining
Team) to be able to properly evaluate a mining in respect to
property insurance.
Coverage is not granted merely on providing of such
information, it only initiates the process of risk evaluation.
24. Information Required
Name of the Company
Location of the Company (registered office)
Shareholders
Holdings/Subsidiaries
Fields of Activity
Corporate Sustainability
Checking for existing participation and/or (legal) restrictions
Company Details
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25. Information Required
Type (Mining, Processing, Storage) incl. details about
Method and Equipment of Mining, Processing, etc.
Commodity, Product
Geocodes (Longitude/Latitude)
Environment (e.g. Geology, Access)
Values per Location (PD/BI) Sum/Explaine
Main Exposures and Challenges
Determining the (Physical) Risk Exposure
Risk Details
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26. Information Required
Responsibilities (e.g. Org Charts, Standards
Emergency Response
Loss Prevention Measures (physical)
Maintenance and Spare Parts Strategy
Reports from qualified surveyors incl. recommendations (plus: your reply)
Loss History
LTIF
Etc.
Evaluation of Risk Quality
Risk Management
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27. Information Required
Slip (Insured, Reinsured, Limit, Deductibles, Sublimits, Claims Protocol)
Policy wording (Exclusions, Definitions)
Special conditions
BI Calculation
Coverage requested
Defining Coverage and Agreement
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