Protection gap persists across insurance world, despite some progress

ORIGINAL PUBLICATION HERE

The global insurance industry still has a long way to go to close the gap between insured and economic losses, despite a wide range of efforts to bring cover to those that lack it.

But although progress has been slow, those involved say the foundations built give cause for optimism about narrowing the rift in the future.

Those involved in closing the protection gap had “a mountain to climb,” said Rowan Douglas, CEO of the capital, science and policy practice at broking group Willis Towers Watson PLC.

“There is an enormous amount of work to do,” he said. “This isn’t just an economic and financial issue for the industry; this is literally protecting people’s lives, livelihoods, shelter and key assets.”

InsurTech-2019: итоги и прогнозы на 2020 год

ОРИГИНАЛЬНАЯ ПУБЛИКАЦИЯ ЗДЕСЬ

Международные инвестиции в InsurTech растут практически в геометрической прогрессии. Они уже превысили $4,4 млрд и могут достичь $6 млрд. Это почти в два раза превышает итоги 2018 года. Денис Гаврилов, директор по развитию бизнеса в страховании ИТ-компании КРОК, рассказывает, в какие технологии и компании инвесторы вкладывают такие существенные суммы, что происходит в России и чего ждать от 2020 года.

Мировая практика

По данным Willis Towers Watson, в 2019 году 239 иншуртех-компаний и проектов привлекли инвестиции в общей сумме на $4,36 млрд (около 310 млрд рублей). Лидирующим целевым рынком для привлечения инвестиций в иншуртех-проекты остаются США (с долей чуть менее 50%), за ними следует Великобритания (около 10%). Наиболее активно растут инвестиции в Китай (с 0% до порядка 10% в 2019 году).

Climate change adaptation financing can benefit from partnership with ILS

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Climate change adaptation projects and the need for them are rising up the agenda, as a recent surge in damages from severe weather and climate related catastrophe events concentrates the mind on the importance of investing in this area.

Public authorities are showing renewed and increasing interest in climate adaptation, while they are also more aware than ever of the need for investment to support the ultimate goal of a more resilient society.

However, while investments into climate change adaptation projects are flowing, they aren’t anywhere near sufficient to deliver the significant progress required to actually increase the resilience of the regions of the world facing the highest climate related risks.

Red Cross’ volcano cat bond targets multi-continent coverage from Q1 issue

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Over 800 million people live within 100km of an active volcano around the world. To prepare for a potential eruption, the Danish Red Cross and International Federation of Red Cross and Crescent Societies, alongside industry partners, are planning a catastrophe bond to cover risks associated with 10 volcanoes in 4 regions. This will likely be one of the most globally focused cat bonds to ever hit the market.

The Red Cross’ volcano cat bond will target covering the risks associated with ten volcanoes from across South, Central and North America, as well as Asian & African countries.

Never before has a catastrophe bond included such a broad spread of exposures, but given the focus of each exposure is a single volcano and the risk of it erupting at a certain level of severity, it makes the modelling possible for a transaction covering risks across a wide-spread of the globe.

Can one earthquake cause a cascade of more?

ORIGINAL ARTICLE BY Matthew Blackett & Coventry University HERE

Europe isn’t a region well known for intense seismic activity, but large earthquakes do happen. In 1953, a devastating 6.8 magnitude quake struck the Greek Ionian Islands. Though these large events tend to be the exception rather than the rule, a flurry of significant earthquakes struck the Balkans on November 27 2019, with epicentres in Bosnia, Albania and Crete. Geologists are worried that these events might gain momentum, with larger and more destructive events imminent.

Should residents be worried? The Balkans – a region stretching from Croatia to mainland Greece, and the Greek islands to the south – has a very complex geology. The whole region is tectonically active due to compression of the Earth’s crust further north and subduction – when one tectonic plate moves under another – to the south. Each process plagues this part of the world with frequent, though usually small, tremors.