Munich Re says innovation is vital as the reinsurance landscape continues to shift.

Speaking at the annual Reinsurance Rendezvous in Monte Carlo, Reinsurance CEO Torsten Jeworrek says strong competition and low interest rates dominate the environment for the January 2015 renewals.

But Munich Re is among those businesses innovating on the borderline between primary insurance and reinsurance.

For example, it now offers cover for the financial impact of reputational damage, a risk previously considered uninsurable.

“Innovative insurance solutions in new areas are the key to long-term profitable growth,” Mr Jeworrek said.

Munich Re expects a moderate increase in demand for property-casualty reinsurance, predicting 1% growth in each of the next three years in Europe and North America.

The forecast rises to 3% in Asia-Pacific and 4% in Latin America, fuelled by increasing market penetration.

The reinsurer intends to stick with its rigorous underwriting policy.

“In standard business, we will continue to resist pricing pressures and withdraw from business if necessary,” Mr Jeworrek said.

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