Systemic risk ‘widens protection gap’: GC’s Enoizi
Systemic risks, characterised by events that can affect entire communities or countries, play a significant role in the widening protection gap.
That is the view of Julian Enoizi, global head–Public Sector Risk Solutions, Guy Carpenter, speaking in June at an interview with Intelligent Insurer at its Re/insurance Outlook Europe 2023 conference in Zurich.
“Insurers can play a vital role in narrowing the protection gap and building resilience.” Julian Enoizi, Guy CarpenterHe said that this type of risk has a far-reaching impact, something that was highlighted by the COVID-19 pandemic and by the geopolitical challenges created by Russia’s invasion of Ukraine.
Enoizi emphasises that such risks pose significant challenges for re/insurers due to their size and the simultaneous occurrence worldwide.
He acknowledges the re/insurance industry’s struggle to address systemic risks, given the lack of understanding and difficulty in insuring them effectively. However, he emphasises the importance of insurers finding ways to participate in these risks to avoid leaving them solely to government intervention, which could undermine the relevance of insurance.
