RVS Live: Swiss Re: Risk - research and technology can help closing the protection gap
Technological advancements are developing a new generation of industry solutions that use technology to better understand, manage, and ultimately reduce risks. Swiss Re is responding to growing client demand by developing new solutions and services across the value chain. A new offering of ready-to-use, scalable solutions allows insurers to offer the products and services end-customers need. Swiss Re expects prices to stabilise due to recent loss events.
Christian MUMENTHALER, Swiss Re's Group Chief Executive Officer, stated: "Insurers are rethinking their business models to tap into new opportunities and better service the end-consumer. The reinsurance industry can help them with ready-to-use services and solutions that address growth and profitability. At the same time, innovative solutions help the industry make progress towards closing the ever-growing global protection gap. As we have seen again in the aftermath of recent floods in the US following Hurricane Harvey, as well as devastating flooding in Bangladesh, India, and Nepal, the protection gap is very real and needs to be tackled with solutions that make insurance both more widely and more easily available."
Each year, losses from large natural catastrophes and extreme weather place a heavy burden on local economies. In 2016 alone, protection gaps due to natural catastrophes and weather events amounted to USD 180 billion worldwide, according to estimates by the Swiss Re Institute.
Several issues contribute to this situation in both mature as well as emerging markets, including a lack of awareness or trust, restricted access to appropriate cover, and concerns over affordability of policies.