Munich Re is overhauling its risk management practices to deal with complex accumulation risks, Business Insurance reports. The move is part of the German reinsurer’s efforts to cover emerging risks.
The firm has built a software program called the Complex Accumulation Risk Explorer to deal with complex risks and the interactions among risks. The program is a tool to assess accumulation scenarios such as the consequences of a prolonged period of heat and drought, which may affect energy generation and air pollution.
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