Climate change is here. Where to in the insurance industry?
Increased frequency and intensity of natural disasters are direct consequences of the climate change and global warming. Additionally, economic development results in higher risk exposure as it increases the value of both private and public property.
According to Munich Re, in 2017 alone, material losses caused by natural disasters amounted to more than USD 335 billion, of which insurance covered approx. USD 140 billion, meaning that the global insurance gap for natural disasters was in 2017 of about USD 195 billion. What does this mean at local level?
According to a report prepared by Deloitte for the Polish Chamber of Insurance (PIU) the 2010 flood caused in Poland direct losses amounting to EUR 3.2 billion, i.e. approx. 1% of GDP. If the same flood had taken place in 2018, it would have cost EUR 3.8 billion, which in local currency means by 20.9% more than in 2010. To what extent are the countries in the CEE region prepared to cope with the increasing climate risk?
ICAR 2019 will attempt to analyze the latest progress made in improving insurance coverage of the households in the region, as well as in risk assessment, claims settlement, product design etc. The conference will also emphasize the role that modern digital technologies may play in all these fields of the insurance operations.