The worsening climate crisis reveals the importance of insurance

Since 2017, the (re) insurance market has suffered over US $ 10 billion in weather-related losses, and the number of meteorological disasters (12) has more than doubled over the past five years.

Wildfires are dangerous to see some of the most important developments. Global insurance losses from wildfires surged to an astonishing 500% between 2010 and 2019. The first two years are double that of the previous decade.

“The pace of change in relatively short timeframes is starting to drive the (re) insurance market. Significant changes in loss experience have forced insurers and reinsurers to reassess their view of risk. I read the statement. “According to Howden’s research, those hoping to recover last year’s losses can be disappointed. The past is no longer a guide to the future of climate-sensitive dangers.”

This report highlights the link between extreme weather events and increased losses from catastrophes from insurance, and the need for insurance needs to be increased. However, accessibility is a persistent issue for many.

Emerging markets with low insurance penetration and high risk of lower GDP are in the aftermath of the worst climate.

The report compares two markets. New Zealand was able to recover 18 months after a series of 2010 earthquakes, but Mozambique was unable to return to its pre-flood GDP orbit after experiencing a severe flood in 2000.

David Howden, CEO of the Howden Group, emphasized the importance of rebuilding insurance models for a more balanced response to climate change, including the world’s most vulnerable people. ..

“The power of insurance in both removing barriers to the transition to a low-carbon future and picking up debris in the event of a disaster is immeasurable,” said Howden. “But we can’t continue the model that protects only those who can afford it.”

To make matters worse, the humanitarian funding gap has widened from less than $ 1 billion 20 years ago to $ 4 billion 10 years ago and now over $ 20 billion.

Charlie Langdale, Head of Climate Risk and Resilience at Horden, said: “The size of the problem needs to be much more imaginative and innovative. It is insurance-centric and resets the way disaster relief is funded.”

The worsening climate crisis reveals the importance of insurance

Source link The worsening climate crisis reveals the importance of insurance

Back to top button