Insurers are raising premiums for pharmaceutical companies and becoming more cautious about who they insure following recent drug recalls, Germany's Der Spiegel magazine reported on Saturday. Market leader Munich Re is increasing premiums drastically and will only insure pharmaceutical clients "very selectively", the magazine quoted a spokesman as saying.

The world's second-biggest reinsurance company, Swiss Re, has already taken the lead in the industry in retreating from pharamceutical business, Der Spiegel said. Munich Re was not available for comment.

Copyright Reuters, 2005