"The protection gap on weather-related risks in the world is USD 180 billion. In Western societies solutions are available and affordable but people don't buy the coverage. It is a very frustrating gap and the one where we have done very little progress. In other societies people can not afford the coverage or solutions simply do not exist," Christian MUMENTHALER, Group CEO, SWISS Re stated, practically summarizing the general opinion on the matter.
Microinsurance, PPPs and the role and importante of the goverments and insurers working in synthony to find and put to work solutions to reduce both exposure and the insurance protection gap, technology's contribution to more accurate modelling as well as to better servicing clients etc. were discussed in several meetings during the RVS meeting.
Hurricanes Harvey and Irma were at the center of attention, as insured losses are expected to reach a sum in the proximity of EUR 70 billion, threatening the reinsurers' profit targets for the current year, but also having the potential to put a stop to the softening market trend and possibly reverse it. Yet, although to soon for seeing an accurate evaluation of losses, one thing is already certain: too many of the losses were not insured.
Cyber - seems to be the present "magic" word, linked to whatever aspects of the re/insurance business chain, an opportunity for development, but also an important and fast evolving risk. Moreover, its complexity and volatile nature in many aspect is somehow intimidating both for customers and industry. What should be the insurance scope, where are the limitations and how should the correct wording were some of the issues under debate. Also, the risk of "silent cyber" exposure—potential cyber-related losses due to silent coverage from insurance policies not specifically designed to cover cyber risk was reported as an important issue, almost 50% of the industry practitioners considering, according Willis -, as growing over the coming year.
XPRIMM Team
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