RVS Live: Reinsurers' consensus: the property insurance gap is a real concern and needs to be closed

Most reinsurers gathered in Monte Carlo have expressed their concern with the lack of proper insurance protection of properties around the world, especially that the latest events have once again shown that climate change is a real challenge.

Christian MUMENTHALER, SWISS Re's CEO said the current protection gap globally for natural catastrophe and weather protection stands at USD 180 billion and growing. In a similar note, MUNICH Re has advocate in favor of the public-private partnerships, as the British Flood Re, the North American National Flood Insurance Program or other European similar entities which "offer policyholders more insurance coverage options, promote flood protection, and also reinforce the basis for improved risk management."

In fact, as Guy Carpenter's international President James NASH has stated, "flood is the new super peril", the reinsurance industry being expected to continue cooperate with governments to find solutions to such mega-cat events, as the recent hurricanes Harvey and Irma or the floods in India.

Yet, as several industry representatives have underlined, such successful PPPs are for the time being rather characteristic to the developed market economies, which leaves large territories of the world witha very poor insurance protection, thus with a very poor resilience in face of the Nat Cat risks. "There are significant pools of capital seeking risk peril and there has never been a better time to transfer risk into the reinsurance markets," James NASH said, meaning that it is a good moment for all interested parties to take action and consider solutions for a greater risk transfer.

Related articles

ON THE MOVE

TOP EVENT

61st "Rendez-Vous de Septembre" ends today in Monte Carlo: review

The 61st edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers ends today in Monte Carlo. The Nat Cat insurance protection gap, as well as the global insurance market readiness to deal with the increasing complexity of the cyber risks were among the most debated topics.

14.09.2017

photodune-3834701-laughing-girl-xs

MONTE CARLO: Live news from the "Rendez-Vous de Septembre"

The 61st edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers has started yesterday in Monte Carlo. XPRIMM publications on the CEE, SEE and CIS insurance markets are available at the XPRIMM stand in Fairmont Hotel as well as at the other event's venues.

10.09.2017

See all