Technical Report: Uninsurable future

O'Connor, Jack, Mirwald, Magdalena, Widjaja, Christina, Panda, Architesh, Pinheiro, Jessica and Kreft, Soenke (2023). Technical Report: Uninsurable future. Interconnected Disaster Risks 2023: Risk Tipping Points. United Nations University - Institute for Environment and Human Security (UNU-EHS).

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    TR_231115_Uninsurable_Future.pdf TR_231115_Uninsurable_Future.pdf application/pdf 12.69MB
  • Sub-type Research report
    Author O'Connor, Jack
    Mirwald, Magdalena
    Widjaja, Christina
    Panda, Architesh
    Pinheiro, Jessica
    Kreft, Soenke
    Title Technical Report: Uninsurable future
    Series Title Interconnected Disaster Risks 2023: Risk Tipping Points
    Publication Date 2023-10-25
    Place of Publication Bonn
    Publisher United Nations University - Institute for Environment and Human Security (UNU-EHS)
    Pages 26
    Language eng
    Abstract Insurance is a tool for financial risk management used by individuals, organizations, governments and businesses to safeguard themselves against the risk of uncertain financial losses, such as those occurring as a result of damage during an unexpected disaster. However, providing insurance in areas prone to natural hazard events (for example wildfires, droughts, storms, floods) has long been a challenge, and as extreme weather events around the world become more frequent and severe, the increasing cost of the damage they inflict is pushing the industry to breaking point in certain areas. Since the 1970s, damages from weather-related disasters have increased seven-fold, with 2022 alone seeing $313 billion in global economic losses. Climate change is dramatically shifting the landscape of risks, with the number of severe and frequent disasters forecast to double globally by 2040, causing insurance prices to rise and threatening the viability of insurance as an option for many. As we see areas around the world being hit with increasingly expensive damages and being pushed towards a tipping point of “uninsurability”, this report delves into the various underlying drivers of the problem, and the actions we can take to avoid it. This technical background report for the 2023 edition of the Interconnected Disaster Risks report analyses the root causes, drivers, impacts and potential solutions for the uninsurability risk tipping point our world is facing through an analysis of academic literature, media articles and expert interviews.
    UNBIS Thesaurus RISK MANAGEMENT
    INSURANCE
    Keyword Uninsurability
    Disaster
    Tipping point
    Copyright Holder United Nations University - Institute for Environment and Human Security (UNU-EHS)
    Copyright Year 2023
    Copyright type Creative commons
    DOI 10.53324/YODT6712
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    Created: Tue, 31 Oct 2023, 01:33:26 JST by Aarti Basnyat on behalf of UNU EHS