Even as countries across the globe grapple with climate change, alternate risk transfer mechanisms like parametric solutions are emerging as the best option. Phoenix CRetro Reinsurance’s Mr Kirill Savrassov and Tenax Capital’s Mr Toby Pughe spoke with Asia Insurance Review.
By Anoop Khanna
According to a PwC report published in May 2022, the insurance protection gap could reach $1.86tn by 2025 and Asia Pacific could account for nearly 50% of all uninsured risks.
Aon’s 2021 Weather, Climate and Catastrophe Insight has pegged economic losses in 2021 at $343bn, of which only $130bn were insured, leaving the global protection gap at 62%. However, these figures do not tell the true story. The US contributed 71% of the total insured losses and it is an economic superpower that can support communities through government-backed disaster relief. Developing countries do not enjoy this luxury and the maximum impact of disasters is often borne by the most vulnerable communities themselves.
FULL ORIGINAL PUBLICATION HERE