CAT bonds can bridge the protection gap


As China grapples with the twin issues of increasing natural hazards and low insurance penetration, the economic progress it achieves tends to be annihilated. Catastrophe bonds can be a viable solution to this problem. Asia Insurance Review spoke with two insurance-linked securities experts to discuss the feasibility of CAT bonds as a risk transfer mechanism in China.

China has always been exposed to natural disasters. Typhoons, earthquakes, tsunamis, floods, landslides and wildfires have occurred throughout Chinese history. Some of these events have been the most destructive, particularly in terms of fatalities.

In recent years the impact of these perils has grown and some of them are becoming even more frequent and severe. Exposure to risk in China is changing.

UNDP evaluates cat bonds as disaster risk transfer solution for ECIS region


The United Nations Development Programme (UNDP) is evaluating the use of catastrophebonds as part of a disaster risk transfer solution for use in the Europe and the Commonwealth of Independent States (ECIS) region.

The focus is on ECIS countries ( Central Asia, Southern Caucasus, Eastern and South East Europe, and Turkey) where underinsured natural disaster risks are costly burdens on government’s, society and taxpayers, drawing influential parties to focus on identifying macroeconomic solutions to minimise the cost of losses.

Between 2005 and 2014 this region of Eastern Europe and CIS faced 314 natural disaster events, which caused the deaths of more than 60,000 people, with 11 million affected by the disaster events.

Insurtech will mean job losses and less demand for reinsurance


The relentless evolution of insurtech will ultimately mean job losses and potentially a decline in the requirement for reinsurance globally, Clive O’Connell, partner and head of insurance and reinsurance at law firm McCarthy Denning, told Monte Carlo Today.

He said it will make reinsurers more efficient and revolutionise the reinsurance landscape in the process.

“Insurtech will affect reinsurance as much as insurance as people look to efficiencies to reduce the expense ratio. This will mean fewer people employed in the sector,” O’Connell said.

Региональная конференция ПРООН по финансированию последствий стихийных бедствий


Стихийные бедствия и сопутствующие им экономические потрясения представляют серьезную угрозу человеческим жизням и благосостоянию, особенно в развивающихся странах. Финансовые потери от катастроф всегда были большими, но в последнее время их размер только увеличивается. За период 2005-2014 годов непосредственно в регионе Восточной Европы и СНГ произошло 314 катастрофических событий, повлекших гибель более 60,000 человек и нанесших урон 11 миллионам, с ущербом около 25 миллиардов долларов США.

Как в развитых, так и в развивающихся странах, недостаточная устойчивость к стихийным бедствиям (все чаще, оказывающим значительное косвенное воздействие далеко за пределами события), представляет растущую угрозу экономическому росту и глобальной безопасности.

UNDP Disaster risk reduction financing regional conference


Disasters and the associated economic shocks are a significant threat to human life and personal wellbeing. While the costs have always been significant, disasters are increasingly more expensive.  Between 2005-2014, the Eastern Europe and Central Asia region alone faced 314 disasters, resulting in more than 60,000 people killed, 11 million people affected and US$25 billion in damages.

A lack of resilience to disasters (which increasingly have massive consequential impacts well beyond the direct event) in both developed and developing economies is an increasing threat to economic growth and global security. Therefore, investors seeking to mitigate these risks need to prioritize funding for development that targets resilience and sustainability provided by better infrastructure.