Munich is Germany's number one location for insurance and is only second to Frankfurt for banking. Munich is even the global leader in reinsurance.
It is a very special mix that makes Munich so successful as a business location. On the one hand there is the meld of global players, small and medium-sized enterprises, start-ups and workshops, on the other a broad spectrum from information and communication technology to medical and environmental technology, life sciences, cultural and creative industries to the automotive sector. One important factor is also the high-performance finance sector: Munich is Germany's number one location for insurance and is only second to Frankfurt for banking. Munich is even the global leader in reinsurance.
Two DAX companies in the insurance sector have their headquarters in Munich – MunichRe AG and Allianz Deutschland AG. Along with companies like AXA, Continentale, D.A.S. Rechtsschutz, Generali, Swiss Life, Versicherungskammer Bayern and many more, the who's who of the insurance sector are located in the Bavarian capital. The bank sector excels in its regional image with six of the 50 major German banks calling Munich their home. In 2017, there were 57,850 people or 6.8% of employees liable to social security contributions in Munich who were working in the finance sector, mainly in banks and in insurance and reinsurance companies.
The finance sector is facing enormous challenges due to low interest rates, regulation, digitisation and hard competition, which are also reflected in the declining employment figures. At the same time new tasks, new opportunities and new solutions are arriving on the finance stage: a technology-oriented start-up scene in the bank and insurance industry was able to establish itself successfully in Munich. Munich is thus one of the leading German fintech locations. White & Case, the international law firm, even ranked Munich as the number 5 global fintech centre after Silicon Valley, London, Singapore and Hong Kong.
Thanks to the many information and communication technology enterprises in Munich, the fintech and insurtech scene can blossom and bloom and also benefit from the numerous research institutes at home in Munich. It is only logical that in May 2017 Munich was appointed InsurTech Hub as part of the Digital Hub Initiative of the German Federal Ministry of Economic Affairs and Energy. The aim of the InsurTech Hub is to equip the traditional insurance industry for the future with innovative business models.
The hub offers creative minds both the physical environment in the form of co-working spaces and event spaces and a digital platform for bouncing ideas around. They bring companies, founders, investors, authorities, associations and research together. Start-ups are given a smooth path to investors and know-how, which in turn boosts Munich's pull for international insurtech start-ups. Twelve renowned insurers from Bavaria participated in the foundation of the sponsoring association, and international networking is racing ahead. In February 2018, Plug and Play, the venture capitalists, were taken on board.
Finance companies that want to stage congresses, annual meetings or incentives find in Munich not only an excellent infrastructure and the popular attractions of the city, but also a decidedly exciting environment. First-class expertise, a cornucopia of business ideas and options for building up new networks – all in one place.