• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Monday, October 2, 2023
  • Login
Business Post
E3P Motor Insurance
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
Business Post
No Result
View All Result
Home Insurance

Inflation To Drive Insurance Protection Gap To New High In 2022: Swiss Re

Staff Reporter by Staff Reporter
July 1, 2022
in Insurance
0 0
0
Inflation To Drive Insurance Protection Gap To New High In 2022: Swiss Re
0
SHARES
25
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

The global insurance protection gap, or the gap between economic losses and those that are insured, increased again in 2021, reaching a new all-time high of US $1.42 tr, according to reinsurance giant Swiss Re.

The trend is expected to continue in 2022, with Swiss Re warning that the current inflationary environment is expected to widen the gap further this year.

Reinsurance firm Swiss Re measures insurance resilience using its sigma Resilience Index and explained that while insurance resilience did improve in 2021, thanks to strong insurance premium growth supported by rising risk awareness among customers and governments’ pandemic-related health spending, it has still not recovered to pre-COVID or global financial crisis levels.

As a result, “The world insurance protection gap for health, mortality and natural catastrophe risks combined reached a new high of USD 1.42 tr in 2021 and the current inflationary environment is expected to widen the gap further this year,” Swiss Re explained.

Adding that, “Despite a strong forecast for nominal insurance premium growth, insurance resilience is expected to weaken in 2022 due to scaled-back government benefits and declining asset values.”

Jerome Haegeli, Group Chief Economist of Swiss Re provided more colour on this, saying, “The cyclical recovery in both macroeconomic and insurance resilience in 2021 cannot hide the fact that deep structural reforms are needed to drive long-term growth.

“The current inflation shock and cost of living crisis are disproportionately affecting the lowest-income households and will only widen protection gaps this year.

“To secure greater resilience and support long-term economic stability, structural parameters such as infrastructure and human capital need to be strengthened and inequality reduced.

“Against this challenging backdrop, the insurance industry plays an important role in shifting financial risks away from individuals and ultimately increasing their resilience.”

In 2021, Swiss Re reports that global mortality resilience dropped to 45.7%, led by falls in emerging Asia, emerging Europe and North America.

At the same time, natural catastrophe resilience remained low, with 75% of global exposures unprotected in 2021.

The current global inflationary environment is set to exacerbate the global insurance protection gap, Swiss Re believes.

The reinsurance firm estimates that price increases in 2022 could drive a US $55 bn widening in the global insurance protection gap, or about 3.8% of the total gap.

The natural catastrophe protection gap has been widening steadily in recent years, from US $169 bn in 2019, to US $216 bn in 2020 and US $251 bn in 2021.

It’s not an even picture across the globe though, with the natural catastrophe insurance protection gap growing more slowly in some regions than others, helped by increasing insurance penetration.

An example is Asia, where higher penetration of property insurance in China has improved natural catastrophe resilience in the emerging Asia Pacific region.

Conversely, nat cat resilience is falling where it is highest, in North America, Latin America and EMEA, while their natural catastrophe insurance protection gaps are widening faster than Advanced AsiaPac.

Higher inflation is expected to worsen protection gaps and this may also become evident in catastrophe claims inflation, as well as through higher costs and insurance pricing.

Overall, it seems the world is not really improving its resilience except in regions where development is accelerating and uptake of financial products like insurance increasing.

In what we’d call the advanced economies of the United States and Europe, for example, we see resilience falling or stagnant, with insurance protection gaps expanding, suggesting a need for more cost-efficient insurance and reinsurance solutions, as well as alternative products that can boost resilience and narrow protection gaps (parametric triggers being one example that may help on the nat cat side).

With around 75% of natural catastrophe exposures across the globe unprotected by insurance and reinsurance, it underscores the need for efficient risk capital, risk transfer and risk syndication, to spread risk and tap into capital markets and expand coverage of global catastrophe risks, a key area the insurance-linked securities (ILS) market can assist with.

Source: www.Artemis.bm By Steve Evans
Previous Post

Nigeria’s Babajide-Agbeja Takes The Helm At Africa Insurance Brokers Association

Next Post

Road Sanity Bonanza: Nigerians To Be Rewarded For Good Driving

Staff Reporter

Staff Reporter

Related Posts

Leadway Assurance Leads With ISO/IEC Re-certification
Insurance

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece
Insurance

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 2023
Dangling Claims Severity And Inflation Pose Global Insurer Cost Challenges- AGCS
Insurance

Regulator Bidding, Insurance Companies USSD Make Motor Claim A Quick Fix

September 26, 2023
Next Post
Road Sanity Bonanza: Nigerians To Be Rewarded For Good Driving

Road Sanity Bonanza: Nigerians To Be Rewarded For Good Driving

Please login to join discussion
NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
ILAN Picture

Loss Adjusters Receive Charge To Match Speed Of New Developments

September 23, 2023
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

November 2, 2022
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
NCRIB And Universal In Pictures

NCRIB And Universal In Pictures

June 7, 2023
Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

April 13, 2021
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

December 6, 2021
ncrib logo

NCRIB Sets The Stage For Adaramola’s Tenure

June 7, 2023
Preferred PenCom Logo

PenCom Board Crafted To Hedge Setback

February 1, 2021
PTAD Wipes 21,227 Parastatals Pensioners From Payroll

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
PenCom Approves Mrs Okwuosa New Access Pension Fund Custodian MD

PenCom Board Back-To-Work Pass, Gets Tick Over

February 1, 2021
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

2
Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

2
Regulators Clear Guinea Insurance  For Private Placement

Regulators Clear Guinea Insurance For Private Placement

2
Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

2
AIICO Head office

Car Insurance Takes A New Turn With AIICO, ETAP ‘Redefine Partnership’

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

Federal Government & NAICOM Working On New Guidelines For Insuring Government Assets

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Inaugurates Discount Rate Committee To Ease Insurance Contracts Under IFRS 17

2
Insurance Mastercard Joe Irukwu Passes On

Insurance Mastercard Joe Irukwu Passes On

2
AIICO Seeks NSE’s Nod To Conduct  Rights Issue

AIICO Seeks NSE’s Nod To Conduct Rights Issue

0
Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

0
Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 2023
AIICO Head office

AIICO Holds Three Dimensional Training: Insurtech, IFRS 17 & MI For NAIPE Corps

September 27, 2023
Dangling Claims Severity And Inflation Pose Global Insurer Cost Challenges- AGCS

Regulator Bidding, Insurance Companies USSD Make Motor Claim A Quick Fix

September 26, 2023
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators

NAICOM Unlocks Insurance Operations With Open Cast Risk Based System

September 26, 2023
Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

September 19, 2023
Heirs Insurance Group Wins Outstanding Insurance Group of The Year

Heirs Insurance Group Wins Outstanding Insurance Group of The Year

September 19, 2023
Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

September 18, 2023
Image Spin: Insurance, Pension & Stakeholders Bare Minds At NAIPE 8th Confab

Finance Expert Urges Govt To Position Pension & Insurance Sectors For Economic Development With Conducive Policies

September 18, 2023
Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

September 18, 2023
ADVERTISEMENT

Recent News

Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 2023
AIICO Head office

AIICO Holds Three Dimensional Training: Insurtech, IFRS 17 & MI For NAIPE Corps

September 27, 2023
Dangling Claims Severity And Inflation Pose Global Insurer Cost Challenges- AGCS

Regulator Bidding, Insurance Companies USSD Make Motor Claim A Quick Fix

September 26, 2023
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators

NAICOM Unlocks Insurance Operations With Open Cast Risk Based System

September 26, 2023
Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

September 19, 2023
Heirs Insurance Group Wins Outstanding Insurance Group of The Year

Heirs Insurance Group Wins Outstanding Insurance Group of The Year

September 19, 2023
Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

September 18, 2023
Image Spin: Insurance, Pension & Stakeholders Bare Minds At NAIPE 8th Confab

Finance Expert Urges Govt To Position Pension & Insurance Sectors For Economic Development With Conducive Policies

September 18, 2023
Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

September 18, 2023
First Less Than An Hour Motor Claim Pay By Sanlam Nigeria Dazzles Customer

First Less Than An Hour Motor Claim Pay By Sanlam Nigeria Dazzles Customer

September 18, 2023
Recyclers Association New Leadership Sets To Birth The Ideal Of Plastic Free Community

Recyclers Association New Leadership Sets To Birth The Ideal Of Plastic Free Community

September 14, 2023
2023 Heirs Life Essay Championship, Kentimfon Ndanyongmong, Emerges The Champ

2023 Heirs Life Essay Championship, Kentimfon Ndanyongmong, Emerges The Champ

September 14, 2023
AIICO Upticks Service Excellence With Inaugural Annuitant Forum:

AIICO Upticks Service Excellence With Inaugural Annuitant Forum:

September 13, 2023
NEM Insurance NEM Insurance NEM Insurance
Business Post

We connect brands with buyers and sellers of insurance, pension and also project insurance and allied Businesses to the trending generation. We help the various public to adapt to the constant changes as it would impact, and also enable advertisers to connect, engage and target opportunities on line , in print and in person.

Browse by Category

  • Business Unlimited
  • Feature
  • Insurance
  • News
  • OIL & ENERGY
  • Pension
  • Travel

Recent News

Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 BusinessPost

No Result
View All Result
  • Home
  • Insurance
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Contact Us
  • About
  • Advertise
  • Privacy & Policy

© 2023 BusinessPost

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In