Morning Briefing: World Bank launches pandemic risk insurance market

Morning Briefing: World Bank launches pandemic risk insurance market | Insurance Business America

Morning Briefing: World Bank launches pandemic risk insurance market
World Bank launches pandemic risk insurance market
The World Bank has launched a new insurance market for pandemic risk, at the G7 finance ministers meeting in Japan.

The Pandemic Emergency Financing Facility will be kickstarted with a $500 million fund to help countries and health agencies tackle infectious diseases and is in response to outbreaks such as Ebola.

“We can’t change the speed of a hurricane or the magnitude of an earthquake, but we can change the trajectory of an outbreak,” World Bank chief Jim Yong Kim said.

The fund, which will be largely financed by the reinsurance sector, will only be available to those countries that are able to borrow from the International Development Association, the poorest countries in the world.
Global insurer to ditch tobacco investments
French-based global insurance company AXA says it will sell its U$1.46 billion of investments in tobacco companies and will make no further investments in the sector.

The BBC reports that AXA wants to support government actions aimed at reducing the number of smokers. It also feels that a life insurance company holding stocks and bonds in tobacco firms is no longer justifiable.

New AXA CEO Thomas Buberl says that there will be a cost to the insurer in the short term but that longer term it would result in fewer claims for smoking-related illnesses.
Longer life expectancy could mean people taking more risks
A survey by Allianz Life Insurance has found that 93 per cent of Americans view the prospect of living an extra 30 years with positivity but it could mean taking more risks.

The poll - based on Stanford University of Longevity figures showing an average increase in life expectancy of 30 years compared to a century ago – found that 56 per cent of respondents would “travel extensively” with their extra years but almost a quarter would “take more risks.”

Respondents also acknowledged that they would have to plan for their future more carefully. Most (91 per cent) said that just putting money aside for retirement would not be sufficient but that a specific plan would be required.