Chart: Guy Carpenter Global Property Catastrophe Rate-On-Line (ROL) Index – 1990 to 2021: The Guy Carpenter Global Property Catastrophe ROL index was up 4.5 percent year on year, at January 1.
Creating More Opportunity for Women in the Post-Pandemic World: Gender equality isn’t just about strong female role models. It has to involve society more broadly — how women are perceived, what opportunities they are afforded and how economic change affects them.
Chart: Top 10 Largest Insured Losses Versus Projections for COVID-19: Company-reported COVID-19 losses are near USD 30 billion. When added to 2020 large losses, total loss is approximately USD 110 billion. Using the mid-point of public COVID-19 loss estimates, a number in excess of USD 140 billion is generated.
Reinsurance Implications of the United Kingdom’s Business Interruption Test Case: On January 15, 2021, the UK Supreme Court issued its widely anticipated decision in the Financial Conduct Authority’s (FCA’s) business interruption (BI) test case. The FCA brought the test case to resolve uncertainty for certain BI policyholders affected by the COVID pandemic. Although the Court ruled that some forms of BI insurance cover COVID losses, the Court adopted a narrow definition of a COVID “occurrence” — an illness suffered by just one person or arguably several people in one household — that has raised questions about the meaning of the word “occurrence” in other contexts.
Community-Based Catastrophe Insurance Creates Incentives for Community-Level and Individual Risk Reduction: The alignment with community-level risk reduction is a potential benefit of community-based catastrophe insurance. Because standard disaster insurance policies apply at the level of individual properties, using insurance to incentivize mitigation of community scale hazards, such as levees or ecosystem-based interventions, for example, restored wetlands, creates inherent difficulties. Yet community-level risk reduction can often be the most effective and cost-efficient means of managing a given risk.
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A Hot Opportunity – Four Trillion Reasons To Accelerate the Energy Transition: Today, it is crucial for companies and the (re)insurance market to incorporate climate change into business considerations as investors, ratings agencies and financial regulators apply pressure on firms. If European companies do no more to reduce carbon dioxide emissions than they have currently promised, Earth’s temperature will be on track to rise 2.7 degrees Celsius by 2100.