The insurance protection gap

The protection gap – underinsurance in emerging and developing economies and the gap between economic and insurance losses – the opportunity that is on every reinsurance CEO’s lips and which presents the largest opportunity to put excess risk transfer capital to use, requiring both traditional and capital markets support.

In a market that is faced with abundant and ongoing pressure, from excess capital, new entrants, the capital markets, reductions in buying, consolidation of reinsurer panels and difficult global financial market conditions, the reinsurance industry is focusing on the next big opportunity.

This opportunity provides both reinsurers and ILS fund managers with an opportunity to assist in building the world’s resilience to disaster risks, while providing rapidly paying post-event risk finance, at the same time as growing the world’s catastrophe risk markets.

It’s win-win for both sides, those in need of resilience and disaster risk financing and the re/insurance and ILS market which is keen to expand into new regions, perils and opportunities. Narrowing the protection gap is expected to be a key focus for years to come.

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Insurance protection gap could hit $1.86tn by 2025: PwC

The global insurance and reinsurance market faces a range of challenges, but at the same time the opportunities for the sector and for the provision of efficient capital to absorb societal risks, is also expanding, with PwC estimating that the global protection gap may expand to US $1.86 trillion by read the full article →

UNDP and Generali partner on digitally enabled parametric insurance solutions

The United Nations Development Programme (UNDP) has announced a partnership on parametric insurance development for the most vulnerable with global insurer and asset management group Generali this morning. The partnership will provide financial and technical resources to develop risk transfer solutions for the world's vulnerable, with a goal of keeping the read the full article →

HSCM Ventures backs Parsyl, the sensor-driven parametrics insurtech

HSCM Ventures, the insurtech focused venture capital investing arm of reinsurance and transport focused asset manager Hudson Structured Capital Management, has led a $25 million Series B round for sensor-driven parametrics coverholder Parsyl. Parsyl’s core tech-focused products are particularly interesting as they offer a glimpse of the future for risk and read the full article →

Start Network buys $2.5m replica ARC parametric drought cover

The Start Network, an international network of non-governmental humanitarian organisations, has purchased a US $2.5 million replica parametric insurance cover from the African Risk Capacity (ARC) to protect more than 800,000 people in Zimbabwe from drought risk. Working in partnership with African Risk Capacity (ARC) and the Government of Zimbabwe, Start read the full article →

AXA Climate partners with CoreLogic to enhance parametric hail offering

AXA Climate, the parametric specialist risk transfer managing general agent (MGA) unit of global insurance and reinsurance company AXA, is working with risk analytics and data specialist CoreLogic to enhance and expand a parametric hail risk transfer product. AXA Climate launched its Hail Protection parametric insurance product in 2019 and now read the full article →

Swiss Re says global insurance premium growth accelerates, but gaps likely still widening

Global reinsurance company Swiss Re has increased its forecasts for global insurance premium growth, seeing an acceleration and now forecasting the market will surpass $7 trillion in global premiums by mid-2022. Previously, just a few months ago, Swiss Re had forecast global insurance premiums would reach $7.2 trillion by the end read the full article →

Humanitarian risk transfer in focus at COP26 with Start Network & IDF partnership

The Start Network, an international network of non-governmental humanitarian organisations, is partnering with the Insurance Development Forum (IDF) on the creation of a new financial service for the humanitarian sector, with parametric triggers and risk pooling at its heart. Named Start Ready, the new humanitarian funding paradigm is designed to help read the full article →

Reinsurance rates must rise, to cover rising climate risks: Swiss Re’s Reichelt

Reinsurance capacity and reinsurance pricing have to rise further in order to cover the growing risks posed by climate change, climate-related risks and so-called secondary peril catastrophe events, Swiss Re's Frank Reichelt explained today. Speaking during a media briefing held in advance of next weeks' Baden-Baden reinsurance meetings in Germany, Reichelt, read the full article →

UNDP launches Insurance & Risk Finance Facility, ILS support anticipated

The United Nations Development Programme (UNDP) has today launched the Insurance and Risk Finance Facility (IRFF), a new initiative that aims to build financial resilience and bridge a $1.4 trillion global health, mortality, and disaster protection gap, with support from the insurance-linked securities (ILS) market expected in future. Importantly, this Insurance read the full article →

Global Parametrics links climate risk transfer to microfinance funding

Global Parametrics has collaborated on a new climate risk transfer product that integrates parametric risk transfer with the provision of debt financing to microfinance organisations and initiatives. CRED, or the Climate Resilience Enhanced Debt (CRED) product, has been jointly developed by Global Parametrics and Enabling Qapital, an impact investor and advisor read the full article →