Megacity aggregation challenge will test insurers’ robustness
Thursday, 10 27 2016, Category: Insurance and Reinsurance, Country: World
An increase of megacities will create a flurry of new insurance distribution forms and buying groups and create new challenges due to an aggregation of risk which some insurers may fail to cope with, according to Allianz Global Corporate & Specialty.
Allianz defines megacities as urban areas exceeding 10 million inhabitants, and the number of such huge cities is increasing rapidly. A 2006 UN working paper documented that there were only two megacities in 1950: Tokyo and New York City. In 2015 there were 29 megacities recorded—around 30 percent above the UN forecast, according to the Allianz report Megacities—Pushing the Boundaries of our Industry.
Source: Intelligent Insurer