State of the Global Climate in 2021
WMO-No. 1290 report
18 May 2022
WMO’s flagship annual report gives details of climate indicators such as temperatures, ocean heat, ocean acidification, sea level rise, sea ice glaciers and extreme weather. It also has a section devoted to impacts on sustainable development, food security, displacement and ecosystems. It includes input from National Meteorological and Hydrological Services, climate centre and dozens of experts, as well as a wide range of UN partners.
Build Back Better
6 April 2022
Flood Re launched “Build Back Better” which enables insurers, working in conjunction with Flood Re, to repair flooded homes in a more resilient manner against future flooding – not just re-building the home as it was previously.
Build Back Better offers homeowners the chance to install Property Flood Resilience measures up to the value of £10,000 when repairing their properties after a flood. This way the next time the area floods their home will be better prepared to keep as much of the water out as possible. Measures can also be installed so that when water does enter it is easier, quicker and safer for families to clean up and move back in – often in a number of days rather than many months.
sigma 1/2022 - Natural catastrophes in 2021: the floodgates are open
30 March 2022
Natural and man-made disasters resulted in global economic losses of USD 280 billion in 2021, the sixth highest on sigma records, and the 16th highest since 1970 after normalising for GDP growth effects. Of the economic losses, USD 270 billion was attributable to natural catastrophes. In addition to a devastating earthquake in Haiti that, sadly, claimed more than 2,000 lives, there were more than 50 severe flood events across the world, as well as tropical cyclones, episodes of extreme cold and heat, and severe convective storms (SCS). Insurance covered USD 119 billion of last year’s economic losses, the fourth highest on record, of which USD 111 billion was compensation for damage resulting from natural catastrophes.
GFDRR Annual Report 2021 - Bringing Resilience to Scale
22 February 2022
This Annual Report highlights the progress and results achieved during FY21. It provides an overview of grant making activities in six regions and across GFDRR’s eight targeted areas of engagement. It also explores some areas of the work in greater depth and includes financial statements for the fiscal year.
Gallagher Re Natural Catastrophe Events report 2021
3 February 2022
This report summarises the economic impact and insured losses from the most relevant natural catastrophe events that have occurred during 2021.
The Global Risks Report 2022 - 17th Edition
World Economic Forum
11 January 2022
The 17th edition of the Global Risks Report identifies tensions that will result from diverging trajectories and approaches within and between countries and then examines the risks that could arise from such tensions. This year’s report also highlights the implications of these risks for individuals, governments and businesses.
The Global Risks Perception Survey (GRPS), which has underpinned the report since 2006, was refreshed this year to gather new and broader insights from nearly 1,000 global experts and leaders who responded.
Natural disaster losses 2021
10 January 2022
Hurricanes, cold waves, tornadoes: Weather disasters in USA dominate natural disaster losses in 2021
Allianz Risk Barometer 2022
Following a year of unprecedented cyber-attacks, business interruption and supply chain disruption, and natural catastrophe activity, these three perils are foremost in the minds of survey respondents in 2022. Meanwhile, awareness of the risks of climate change is growing among companies, achieving its highest-ever position of sixth in the Allianz Risk Barometer.
Weather, Climate and Catastrophe Insight - 2021 Annual Report
Over the past year, the world has counted the costs of another round of major, expensive and disruptive natural disasters. These kinds of catastrophes are increasing in frequency and severity — impacting livelihoods, communities, and businesses across the globe. And many of them can be exacerbated by the effects of climate change.
As the world wakes up to the effects of a changing climate, what can organizations do to build for the long-term while tackling the immediate challenges of a volatile world?
Preparing for a wetter world: Strategies for corporate flood resilience
'Preparing for a wetter world: Strategies for corporate flood resilience' is the second publication in Rethinking Flood, a four-part series examining the implications of flood risk for corporates, governments, and society.
Business exposure to flood risk is growing, and it is critical for firms to uncover hidden vulnerabilities propagating through their value chain. This report explores the implications of flooding for firms and presents five principles that can be integrated in Enterprise Risk Management (ERM) practices to build resilience.
Enhancing Financial Protection Against Catastrophe Risks: The Role of Catastrophe Risk Insurance Programmes
11 October 2021
The financial management of catastrophe risks presents an important public policy challenge for governments across the world. Climate change, the increasing reliance on digital technologies and socioeconomic trends such as globalisation and urbanisation are affecting the frequency and severity of the floods, cyclones, cyber-attacks and infectious disease outbreaks that produce significant financial, economic and social costs each year.
This report examines the role of catastrophe risk insurance programmes (i.e. loss-sharing arrangements within the insurance sector and often in partnership with governments) in broadening the availability of affordable insurance coverage for catastrophe risks and limiting risks to public finances.
AXA Future Risks Report 2021
29 September 2021
Climate change and cyber risk top the list of concerns
The report finds that the main risks in the next five to ten years will relate to climate change, cyber security risks and pandemics and infectious diseases.
Sunk Costs: The Socioeconomic Impacts of Flooding
'Sunk Costs: The Socioeconomic Impacts of Flooding' is the first publication in Rethinking Flood, a four-part series examining the implications of flood risk for corporates, governments, and society. The report offers an overview of the current state and trends of flood risk globally. It discusses the economic costs of flooding, its multi-sectoral impacts, as well as its societal and environmental consequences. The report highlights the potential for flood risk to exacerbate pre-existing socioeconomic inequalities and discusses the role insurance can play to protect vulnerable communities. It additionally analyzes government strategies to narrow the protection gap and enhance national flood resilience, presenting their fiscal costs and potential drawbacks.
Issue Brief: Insurance For Climate Resilience
Climate Finance Advisors
Insurance is a financial instrument that allows vulnerable households, businesses, and communities to gain financial protection from unforeseen adverse events, including climate-related natural disasters and shocks such as storms, floods, fires, and droughts.
Global Climate Risk Index 2021 - Who suffers Most from Extreme Weather Events? Weather-related Loss Events in 2019 and 2000-2019
The Global Climate Risk Index 2021 analyses to what extent countries and regions have been affected by impacts of weather-related loss events (storms, floods, heat waves etc.). Human impacts (fatalities) and direct economic losses were analysed. The most recent data available — for 2019 and from 2000 to 2019 — were taken into account.
Insuring the climate transition: Enhancing the insurance industry's assessment of climate change futures
22 leading insurers and reinsurers from across the globe worked with UNEP FI to develop the first comprehensive guidance for the insurance industry to identify and disclose the impact of climate change on their businesses. This report represents the largest collaborative effort by market participants to pilot some of the most challenging recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Cities at risk – Building a resilient future for the world’s urban centres
This new Lloyd’s report, commissioned before COVID-19 and published in collaboration with Urban Foresight and Newcastle University, provides a comprehensive analysis of the risks’ cities are facing and will face in the future. It looks at their impacts and how urban areas can protect themselves from these threats.
It also suggests ways in which insurers and the relevant authorities could work together to build resilience, reduce risks and develop new insurance products and services that meet cities’ risk needs. This study helps city administrators and risk managers, as well as Lloyd’s market insurers and brokers, understand the risks that will influence the design and function of cities in the coming decade, and how insurance product development could respond to these changes.
Reimagining Resilience in a Post Pandemic World
9 September 2020
Munich Re US White Paper Wants to Know: Can We Use Lessons Learned from COVID-19 Pandemic to Mitigate the Risks of Climate Change?
COVID-19 Risks Outlook - A Preliminary Mapping and Its Implications
This report, written by the World Economic Forum in partnership with Marsh & McLennan and Zurich Insurance Group, taps into the views of nearly 350 senior risk professionals who participated in the COVID-19 Risks Perception Survey. They were asked to take a view on 31 risks across three dimensions: most likely for the world, most concerning for the world and most worrisome for companies.
OECD Policy Responses to Coronavirus (COVID-19) - Responding to the COVID-19 and pandemic protection gap in insurance
The COVID-19 pandemic and the measures taken to limit the spread of the disease have significantly disrupted economic activity in countries around the world, resulting in significant business interruption losses. The vast majority of these losses are likely to be absorbed by policyholders as, unless governments (or courts) intervene, few companies have business interruption coverage that is likely to respond to these types of losses – exposing the existence of an important protection gap for some pandemic-related business interruption losses. This note provides an overview of how business interruption insurance against pandemic risk could be provided with support from governments, and some of the challenges and considerations necessary for establishing such a programme.
Insurance for Climate Adaptation - Opportunities and Limitations
In this background paper submitted to the Global Commission on Adaptation, Cass Business School’s Professor Paula Jarzabkowski, Birkbeck, University of London’s Dr Konstantinos Chalkias and their co-authors make seven recommendations to maximise the benefits of insurance for climate adaptation.
Special report no 25/2018: Floods Directive: progress in assessing risks, while planning and implementation need to improve
Floods can cause injury and loss of life, considerable economic costs, and damage to the environment and cultural heritage. Serious floods have become more frequent in Europe. In recent years, more than twice as many flash floods of medium to large magnitude have been registered as in the late eighties. Climate change is an aggravating factor, triggering changes in precipitation and weather patterns, sea level rises and, consequently, more frequent and severe floods.
12th meeting of the World Forum of Catastrophe Programmes in Madrid
From 25 to 28 September 2018, the Consorcio de Compensación de Seguros (CCS) staged the 12th meeting of the World Forum of Catastrophe Programmes (WFCP) in Madrid.
Between State and Market: Protection Gap Entities and Catastrophic Risk
The challenges posed by the growing catastrophe insurance protection gap, particularly those of rebuilding in the aftermath of disaster, have prompted the generation of entities, which we label Protection Gap Entities (PGEs). These PGEs bring together market and non-market stakeholders in an effort to address the protection gap. They differ considerably in governance, political economies, points of origin, perils, and means of funding loss. Yet PGEs have the same broad goal:
To transform uninsured risk into insurance-based products that can be transferred into global financial markets to provide capital for recovery following a disaster.
Guide To Government Pools
Reinsurance pools seek to provide insurance where there is none or where it is not readily available, but the demand for them is not as great as it should be. To introduce this special report, Jonathan Gale, chief executive, Bermuda Reinsurance and managing director at AXA XL, writes that the industry needs to develop a broader approach to how the risk is assumed and accounted.
Climate insurance and water-related disaster risk management - Unlikely partners in promoting development?
There is a growing consensus that insurance, risk transfer, and sharing mechanisms have an important and growing role to play, particularly in offsetting the economic impacts associated with extreme events. What is less clear is the extent to which such instruments encourage adaptation programmes and policies that would serve to minimise future loss and damage and, hence, contribute to sustainable development. This paper does not pretend to offer answers, but rather contributes to the emerging discussion and brings to that discussion a water lens.
Insurance of weather and climate-related disaster risk: Inventory and analysis of mechanisms to support damage prevention in EU
Ramboll and the Institute for Environmental Studies (IVM) were contracted by the European Commission (EC) to conduct a study on the insurance of weather and climate-related disaster risk, and to create an inventory and analysis of mechanisms to support damage prevention in the European Union (EU). The study provides an overview of the use of insurance against natural disasters. It suggests general recommendations as well as specific recommendations on the role of the European Commission in addressing the issues uncovered, and encourages stakeholder’s efforts and best practices observed across the EU.