Global underinsurance is a growing challenge says Swiss Re
The underinsurance of property risks is a growing global problem according to reinsurer Swiss Re’s latest sigma report. The data shows that over the past decade 70 per cent of the economic losses were uninsured. That means a protection gap of U$1.3 trillion. The report estimates that the value of uninsured losses from future natural catastrophes will be $153 billion annually. In emerging markets 80 to 100 per cent of property is uninsured but the US, Japan and China have the largest exposure to underinsurance in value terms.
In the US the biggest risk to uninsured property is from earthquakes followed by winds and floods. In Canada floods are the main concern, although the exposure if far smaller than the US and lower than countries such as Italy, Mexico and Germany.
Swiss Re’s
report also shows a $63 billion protection gap for general property risks such as fire, water damage and burglary.
Fraud conviction sends strong message says insurance body
The Insurance Bureau of Canada has responded to a five-year jail sentence handed to Ontario cop Carlton Watson Monday. He was convicted of multiple counts of defrauding insurance companies through false road collision claims and IBC’s VP of investigative services Rick Dubin commented: “Auto insurance fraud in Ontario is a multi-million dollar business. And when someone makes a false or exaggerated claim, honest consumers pay considerably more than they should for insurance.”
He said that law enforcement and insurance companies worked actively to ensure this conviction and also praised the court: "Staged collisions sometimes draw innocent drivers into dangerous situations that put their safety and security in jeopardy. We are encouraged to see the courts strike hard at the core of this practice. One day, hopefully, we will eliminate it."
Risk firms collaborate on advanced cyber risk model
AIR Worldwide, BitSight Technologies and Risk Based Security have announced a collaboration to build an advanced cyber risk model. AIR, which is a catastrophe risk firm is teaming with the two cyber specialists to provide insurers with tools to better understand and manage the evolving risk from cyber attacks. The news comes as a report from PwC estimates that the cyber insurance market is set to triple to $7.5 billion in annual premiums by 2020.
