Risk pools can be an efficient way to insure and manage risks in countries which regularly suffer natural disasters. But is the gap between policy buyers and sellers being bridged quickly enough to make these pools possible? Intelligent Insurer reports.
Natural disasters are becoming more frequent. According to German reinsurance giant Munich Re, a total of 850 natural catastrophes occurred in 2018, over 100 more than the year before. In addition to their huge humanitarian cost, these events caused $160 billion in financial damage and only half of that loss was insured.
"Reinsurers are actively standing by, waiting to participate in the next risk pool."
As floods, droughts, earthquakes and wildfires become more common, reinsurers around the world face a huge challenge. How do they provide effective and appropriate cover, for themselves and for the people at risk in these communities?
Risk pools offer a solution, providing significant benefits for reinsurers and their clients. However, the establishment of new pools can be slow, leaving many populations vulnerable.
Munich Re, Natural disasters, Catastrophe, Insurance, Reinsurance, Global