Very high losses from thunderstorms – The natural disaster figures for the first half of 2020
Up to the end of June, natural disasters produced overall losses of around US$ 68bn, a slightly lower figure than the 30-year average (US$ 74bn after adjustment for inflation). Insured losses, at around US$ 27bn, were higher than usual (US$ 20bn) due to the large proportion of weather disaster losses in North America.
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.
sigma 2/2020: Natural catastrophes in times of economic accumulation and climate change
To date, the majority of rising losses resulting from natural catastrophes have been due to the rising exposure accumulation (human and physical assets) that has come with economic growth and urbanisation, the latest signs says. In the coming decades, climate change will be one of many factors contributing more to growing losses. In particular, as world temperatures warm, the frequency of and losses resulting from severe weather events will rise.
After two high-loss years in 2018 and 2017, economic losses from natural catastrophes and man-made disasters in 2019 were lower at USD 146 billion. The insurance industry covered USD 60 billion of last year's losses, down from USD 93 billion in 2018, and also below the USD 75 billion average of the previous 10 years.
WMO Statement on the State of the Global Climate in 2019
This multi-agency report highlights increasing signs and impacts of climate change in atmosphere, land and oceans.
Bringing Resilience to Scale - GFDRR Annual Report 2019
Fiscal year 2019 (FY19) was marked by a large number of climate-related disasters across the world, exacerbated by human factors such as conflict and urbanization.
This Annual Report highlights the progress and results achieved during FY19. It provides an overview of grant making activities in six regions and across GFDRR’s eight targeted areas of engagement. It explores some areas of the work in greater depth and includes financial statements for the fiscal year.
The Global Risks Report 2020 - 15th Edition
The World Economic Forum’s Global Risks Report 2020 forecasts a year of increased domestic and international divisions and economic slowdown. Geopolitical turbulence is propelling us towards an “unsettled” unilateral world of great power rivalries at a time when business and government leaders must focus urgently on working together to tackle shared risks.
Allianz Risk Barometer 2020
For the first time ever, Cyber incidents (39% of responses) ranks as the most important business risk globally in the ninth Allianz Risk Barometer 2020, relegating perennial top peril Business interruption (BI) (37% of responses) to second place. Awareness of the cyber threat has grown rapidly in recent years, driven by companies increasing reliance on data and IT systems and a number of high-profile incidents. Seven years ago it ranked only 15th with just 6% of responses.
Changes in legislation and regulation (#3 with 27%) and Climate change (#7 with 17%) are the biggest climbers globally underlining the US-China trade war, Brexit and global warming as increasing concerns for companies and nations. The annual survey on global business risks from Allianz Global Corporate & Specialty (AGCS) incorporates the views of a record 2,718 experts in over 100 countries including CEOs, risk managers, brokers and insurance experts.
Weather, Climate & Catastrophe Insight, 2019 Annual Report
This report evaluates the impact of the disasters and extreme weather events that occurred worldwide during 2019 and provides an overview of global economic losses.
The report reveals that direct economic losses and damage from natural disasters in 2019 were estimated at USD232 billion. This was reduced from recent elevated levels in 2016, 2017 and 2018. The USD232 billion was 3 percent lower than the average (USD239 billion) and 5 percent lower than the median (USD243 billion) during the 21st Century. The economic losses were a further 20 percent lower than the average and 12 percent lower than the median of the past decade (2009-2018).
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.