Dec 16, 2020

Natural disasters caused $76bn of insurance losses in 2020

Swiss Re
Deloitte
William Girling
2 min
Natural disasters caused $76bn of insurance losses in 2020
Research conducted by Swiss Re found that global insurance losses from natural catastrophes in 2020 stood at US$76bn, a 40% increase on last year...

Research conducted by Swiss Re found that global insurance losses from natural catastrophes in 2020 stood at US$76bn, a 40% increase on last year.

Losses have been driven by severe storms, floods, tornadoes and wildfires in the US. If man-made disasters are factored in, this figure increases to $83bn. As such, the company notes, 2020 has been the fifth-costliest year for the industry since 1970, with economic losses standing at 45%, 8% above the 10-year average.

COVID-19 may have stolen significant portions of the headlines this year, but Swiss Re reminds us that climate change, particularly rising global temperatures which provide a more fertile atmosphere for extreme weather, is a problem that cannot be ignored.

A huge test for insurance

”As with COVID-19, climate change will be a huge test of global resilience. Neither pandemics nor climate change are 'black swan' events. But while COVID-19 has an expiry date, climate change does not, and failure to 'green' the global economic recovery now will increase costs for society in future,” said Jerome Jean Haegeli, Group Chief Economist. 

Furthermore, continues Martin Bertogg, Head of Cat Perils, with Occidental hurricane activity projected to increase in 2021 and beyond, the issue shows no clear sign of resolution:

”Large-scale climate conditions in the North Atlantic suggest elevated hurricane activity for 2021 and likely beyond. This increases the probability of a catastrophic landfall. Combined with the loss impact of secondary perils accelerated by climate change, insured catastrophe losses will only rise in the future.”

Finding a solution

The scale of the problem facing insurers has also been outlined by Deloitte, which found that the majority of surveyed regulators had no clear plan on how to prepare for climate change.

Adopting new technologies and working closely with customers and policymakers could help to bolster resilience through climate-related programmes, Deloitte suggests. The aim would be to reassure “regulators and other stakeholders about their ability to withstand extreme weather events and effectively transition to a low-carbon economy.”

With the general consensus seeming to indicate that climate change will only continue to worsen industry strains, finding a balance between affordability, availability and stability will be key to the industry’s future.

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Jun 16, 2021

Tribe and APOLLO announce national insurance campaign

Tribe
Apollo
campaign
Insurance
2 min
Tribe Property Technologies and APOLLO Insurance have launched a campaign to digitise insurance access across Canada

Tribe Property Technologies in partnership with APOLLO insurance has announced a national insurance campaign to digitise insurance for condominium owners, renters, landlords, and developers across Canada. The aim of the campaign is to make insurance access easier and faster for owners while improving the coverage and protection of condominiums and rental buildings.

According to several surveys, nearly half of 4.5mn rented houses in Canada do not have tenant insurance protection, meaning those individuals and their families are put at risk of fire and water damage. 

What does the national insurance campaign include? 

According to Tribe, the company is working with APOLLO to ensure that this type of insurance is easier to access. It aims to achieve this by introducing a direct connection to APOLLO's insurance technology from both Tribe's strata and condo management platform and rental software to allow for increased education and awareness for owners into insurance risks and options. 

It also includes the future ability for notifications for mid-term cancellations, and plans to offer protection from potential strata/condo corporation deductibles, Tribe said. 

"We are excited to partner with APOLLO to bring accessibility, visibility, and education around insurance options to our communities and reflect the current lifestyle expectations of condo owners and residents while protecting the value of their biggest assets", said Joseph Nakhla, Chief Executive Officer of Tribe. 

Nakhla added: “This agreement with APOLLO is just the first step under our Digital Services & Partnerships revenue pillar. We will continue to layer on services to drive revenue for Tribe, and bring convenience and savings for our users, with the goal of being able to offer a one-stop-shop to our development partners and the over 100,000 residents in Tribe-managed communities”.

APOLLO uses technology as a channel between insurance brokers, carriers, and their mutual clients, offering insurance options from multiple companies on one integrated online platform.

"We like that Tribe is taking a fresh approach to condo living and building smart homes through tech-enabled service, and an integration with their Community Platform supports our goals of making insurance more accessible and supporting the needs of communities”, said Jeff McCann, Chief Executive Officer of Apollo.

 

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