Compared to its predecessor, 2018 may have seemed timid in terms of natural catastrophes. But don't let appearances fool you – last year became the fourth costliest year in insured losses, according to the Swiss Re Institute's latest sigma. The combined insured losses of 2017 and 2018 reached USD 219 billion, the highest ever for a consecutive two-year period.
Wildfires, hurricanes, typhoons and other severe weather events contributed to the USD 165 billion in total economic losses worldwide. With just over half of that (USD 85 billion) insured, we are now looking at a protection gap of USD 80 billion. According to sigma, explanations for underinsurance include lack of consumer risk awareness, a poor understanding of the catastrophe cover available, and hesitation on the side of the industry to provide cover where risk assessment is uncertain.
But what specifically is making us more vulnerable to disasters? The temperatures are getting warmer and the trend of living in more urbanised communities where our assets are highly concentrated (and exposed), has been on the rise. Compared to two decades ago, the likelihood of extreme weather affecting a densely populated area is significantly higher, which means we are less resilient than before.
Despite the rise in secondary perils, single natural catastrophe events continue to cause vast devastation and disruption to the affected areas. The costliest events of last year included California's Camp Fire, Hurricane Michael and Typhoon Jebi in Japan. Each one of those impacted local infrastructure and interrupted business activity in the area. Even in the case of existing coverage, the financial strain of each natural disaster is usually substantial enough to linger on for several years.
Without a doubt, the speed of getting to the funds to start the recovery efforts is a much-needed lifeline. Parametric (or index-based) products – often simpler and more transparent in their wording – may lessen the stress of business interruption immediately after a Nat Cat event, increasing our resilience after natural disasters.
To download the latest Swiss Re Institute sigma, click here.
To find out more about Swiss Re Corporate Solutions parametric offerings, click here.
To learn more about our solutions on closing the protection gap, click here.
Die deutsche Automobilindustrie und ihre Zulieferer sind gefordert. Zunehmend komplexere und internationale Lieferketten, fehlende Ausweichmöglichkeiten und die Konzentration von Fertigungsschritten haben die Ausfallanfälligkeit erhöht. In diesem Webinar liefern wir tiefere Einblicke in die Erkennung und Bewertung von Risiken im modernen Supply Chain Management. Dabei zeigen wir in Zusammenarbeit mit der ZF Gruppe auf, wie sich Automobilzulieferer und -hersteller fit für die neuen Herausforderungen machen. Das Webinar findet am Freitag, 5. Juli 2019 um 10.30 Uhr statt.Learn more
Les ETI (entreprises de taille intermédiaire) se transforment, innovent, s'internationalisent à une vitesse et avec un dynamisme sans précédent. La transformation et la résilience sont deux enjeux majeurs pour les ETI. Comprendre l'ADN et la singularité des ETI est indispensable pour que les professionnels des risques et des assurances puissent jouer leur rôle de conseil et d'accompagnement auprès des ETI. Rejoignez le webinaire: Jeudi 27 Juin 2019, 9 h 30 (Paris).Learn more
The most recent data published by the National Violent Death Reporting System identifies that, in 2015, 83 suicides occurred in medical facilities. According to the CDC, the suicide rate in the US has increased more than 25% from 1999 to 2016 and 54% of those who died by suicide in that period did not suffer from a mental health condition. They report that suicide is the 10th leading cause of death in the US, taking more than 40,000 lives a year. We are aware that most inpatient suicides are the result of hanging, most commonly using a door or its handle or hinge; a head, handle, bar or door in the shower; a ceiling or sink pipe; or another type of fixture as the ligature fixation point. Join us to hear from the team at Garden City Hospital to learn about their journey with identifying and monitoring patients at risk for suicide and removing the means to accomplish suicide in the physical environment.Learn more
Swiss Re Corporate Solutions aims to steal a march on the competition with an integrated approach to writing international insurance programmes, according to Chris Hart, head of international business, Swiss Re Corporate Solutions.Learn more
23 May 2019
09 May 2019