Swiss Re warns of growing risks in the reinsurance market
Keystone-SDA
Swiss reinsurer Swiss Re sees growing demand for insurance cover as risks become increasingly complex.
Natural hazards in particular – such as gales, droughts and forest fires – are likely to drive up costs further.
Swiss Re’s experts expect insured natural catastrophe losses to rise by between 5% and 7% annually.
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Model calculations have shown that, in a worst-case scenario, insured losses could even reach around $320 billion this year, according to a press release published on Monday at the Rendez-Vous de Septembre industry gathering in Monte Carlo.
A cluster of hurricanes such as Harvey, Irma and Maria in 2017 alone could already push annual insured losses to over $120 billion dollars.
According to Swiss Re, wildfires are the fastest-growing weather risk worldwide, with insured wildfire losses in Europe having risen by an estimated 8% to 11% annually over the past few decades.
This risk continues to grow, partly because more and more people and assets are located in areas at risk of wildfires.
Meanwhile, better data, modelling and prevention would help to better understand the changing risks and improve risk transfer, according to Swiss Re.
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Translated from German, reviewed by an English Department journalist.
