Kuwait – Climate change tests readiness of ins. Sector
Tuesday, 07 23 2019, Category: Insurance and Reinsurance, Country: Kuwait
Kuwait witnessed during the past year a climate change, which led to catastrophic damages during the winter season due to heavy rains and floods, including large material losses in streets, private properties and vehicles. Moreover, during the summer, high temperatures also caused a range of fires in vehicles, electricity incidents, fires, and power cuts. As a solution, insurance companies try to develop new products in order to address climate change given that traditional products are too limited.
“Al Qabas” discussed with a group of insurance leaders the “catastrophe” risks as follows:
The president of the Kuwait Insurance Federation and CEO of the Gulf Insurance Group, Mr. Khaled Al Hasan, said that insurance companies are keen on developing new insurance products noting that there are no specific metrics to measure climate change damage as events happen suddenly in different geographic zones. Therefore, underwriters try to diversify risks across geographic reasons to avert risk concentration.
Source: Al Qabas