As the world keeps heating up, the 500 year floods keep rolling in, and the category 4 and 5 hurricane and typhoons because a yearly event, catastrophe risk, reinsurance, and cat bonds are becoming more and more attractive. The demand for these insurance products have increased exponentially. https://seekingalpha.com/article/4360139-reinsurance-pricing-to-catch-up-demand-expected-to-rise-analysts
For governments, businesses, and even private individuals the attractiveness of insuring against “acts of God” or unpredictable catastrophic events is only met by increasingly expensive catastrophic insurance packages. The insurance industry, governments, and central banks will need to gather to discuss how to meet this demand, and insure against catastrophes that are becoming more and more expected, but continuously unpredictable. https://www.openpr.com/news/2099899/business-catastrophe-insurance-market-to-witness-massive
The growth in this market is expected to explore between 2020 to 2025. What does that mean for your business? What does that mean for your industry? The health and pharma industry, in light of the Covid-19 outbreak and pandemic, will face an influx in government investment, and a reckoning after the pandemic dust has settled on how they account for and price their services. The insurance industry may well face the same for catastrophe insurance. Insuring the uninsurable has its costs, but what do we do when the people who need this type of insurance the most can’t pay?
Sound off in the comments or in the form? What type of insurance product do you want to see? How do we calculate the risks associated with cat bonds and catastrophe insurance in light of seemingly more frequent catastrophes? Share your thoughts in the form below and I’ll highlight in the next insurance newsletter.