UN report highlights climate & disaster risk transfer
Monday, 10 12 2015, Category: Insurance and Reinsurance, Country: World
The insurance, reinsurance and capital markets risk transfer sector has reached an inflection point in terms of tools, techniques and capital to address climate and disaster risks, now demonstrating the potential to scale-up and expand in scope, according to the United Nations.
The use of insurance and reinsurance capacity, alongside capital sourced from institutional investors or insurance-linked securities (ILS) specialists, using products such as sovereign risk pooling, microinsurance, catastrophe bonds and index-based insurance, is highlighted by the UN as a long-term shift signaling the increasing ability and willingness of private sector financial markets to address climate and disaster risks.
A new report from the UN, titled “Trends in Private Sector Climate Finance,” found that the private sector has made significant progress in responding to the challenges posed by climate risks since the 2014 Climate Summit in New York.