After the impact of Covid-19, the sector should carefully keep track of other risks to the planet, such as climate change and natural disasters

The world begins to glimpse a new horizon after one of his biggest struggles in recent history, that against Covid-19. The impact absorbed by the global insurance sector throughout the pandemic is still ongoing, but another battle remains, one that is even more challenging: climate change. It has an impact on the recurrence of natural catastrophes that pose risks to the future of societies, and building a sustainable future is part of the mission for a segment that is capable of mitigating these losses.
It is not actually a ‘new’ risk. At a global scale, the sigma report Natural Disasters in 2020: Secondary Risks in the Spotlight, But Let’s Not Forget Primary Risks, from Swiss Re Institute, indicates that economic losses from natural disasters totalled US$190 billion last year. In 2020, only 18% of losses from these types of events were insured in Latin America in the last decade. ‘It is a pressing situation to which the sector must quickly adapt. Now, more than ever, it is important to take measures to close the protection gaps for primary and secondary risk exposures, making society and the planet more resilient to climate change and future events’, says Fred Knapp, Head of Reinsurance for Brazil & Southern Cone at Swiss Re.
Extra care is to be taken with secondary risk events, such as floods or landslides, or those arising from primary risks, such as fires and urban damage resulting from tragedies, which represent 71% of insured losses for the period analyzed by Swiss Re’s sigma. ‘At Swiss Re, we are convinced that all of us, industries, public authorities, companies and individuals, have a fundamental role in taking concrete measures to mitigate this crisis. As reinsurers, we are aware of this responsibility and believe that working together is essential to making the world a more resilient place in the future,’ adds Fred.