Chief exec is optimistic about an increase in sales

Primary insurers will be forced to buy more reinsurance cover because of Solvency II, according to Munich Re chief risk officer Joachim Oechslin. The increased sales will help Munich Re boost sales in 2011.

“On balance, we believe there will be a positive impact on our business,” Oecshlin said.

He observed a “disproportionate increase in conservatism” in the latest Solvency II proposals from EU regulatory body CEIOPS, citing higher capital requirements even for business not directly exposed to financial markets.

"We are optimistic that regulators and policymakers will make a reasonable decision," Oecshlin said.