Reinsurance can protect against “new catastrophes”
Wednesday, 07 08 2015, Category: Insurance and Reinsurance, Country: World
The rise in global urbanisation to hazard prone areas, climate change and increased values at risk have sparked a new “era of catastrophes,” signalling an opportunity for the insurance and reinsurance sector to improve the management of extreme risks, according to Professor Howard Kunreuther.
Speaking at the Global Insurance Forum in mid June, Professor of Decision Sciences and Business Economics and Public Policy, Wharton School, University of Pennsylvania, Howard Kunreuther discussed changes and developments the insurance and reinsurance industry could adopt, to better mitigate the impact of extreme catastrophes.
Kunreuther explained that the “insurance industry today is not effectively meeting two of its most important objectives,” providing comprehensive information to residents in hazard prone areas and failing to provide good incentives to those at risk to invest in and reduce loss prevention measures.