The islands of the Caribbean have a problem. The air and earth around them is unforgiving. They are some of the most hazardous places on the planet.
What makes many of these islands so beautiful and dramatic also reflects the catastrophic processes that have built the terrain — the earthquakes, eruptions, floods, and landslides. And these catastrophic processes in turn affect the island economies.
During January, I had the honor of leading a panel discussion at the Eleventh India Rendezvous in Mumbai and was joined by four senior-level executives from leading reinsurers and insurers.
My panelists included (pictured above, seated from left to right): G Satish Raju, Head of South Asia Global Partnerships for Swiss Re; Girija Subramanian, Deputy General Manager at India’s largest domestic reinsurer GIC Re; Amitava Gupta, Lead – Commercial Lines Claims at SBI General Insurance Company Ltd. and Rekha Gopalkrishnan, Deputy General Manager at The New India Assurance.
Across the whole conference, there was much talk about the growth potential in India, with reports stating that the insurance market could quadruple in ten years. But with the economy growing fast, insurance penetration remains a challenge — with a non-life insurance penetration rate hovering around one percent compared to a global average of six percent.
I had the privilege of following Ben Brookes onto the Exceedance main stage in 2015. I can’t remember a word of my talk, but something Ben said while I was watching him from the green room has stayed with me ever since:
“Some, like Aubrey de Grey, believe that the first person to live to 1,000 has already been born.”
If that sounds to you like the claim of an oddball biogerontologist, you’re not alone. I for one remember scratching my head quizzically at the time.
All the same, it certainly got me thinking. If we’re going to live that long, we’re going to need something worthwhile to keep us busy. We’re all going to need to find a purpose; a focus for our energies.
RMS has produced estimates for the insured loss arising from the Thomas Fire that affected the Southern California counties of Ventura and Santa Barbara in December 2017. The estimate will fall between US$1 billion and US$2.5 billion, and includes loss caused by burn or smoke damage to personal, commercial, and industrial lines of business, along with insured loss from business interruption and additional living expenses. It excludes loss to automobile and agriculture lines of business and all damage related to the recent mudslides that impacted the same area. This estimate was calculated using RMS high-resolution exposure data and comparisons against historical fire damage, loss, and claim data.
Working with Build Change, an earthquake engineering charity and RMS philanthropic partner, and seeing their work alongside other NGOs all helping Nepal rebuild after the 2015 earthquake, is a source of inspiration for me as I continue my sabbatical in this amazing country. To read about my initial view of the progress made in Nepal, please read my earlier blog.
“Investing in mitigation action to reduce disaster consequences shows benefits relative to costs multiplied by a factor of X — where X maybe four or seven, or some other number as high as 15.”
As most simply expressed in 2011 by Tom Rooney, U.S. Congressman for Florida’s 17th District “For every US$1 spent on mitigation, US$4 in post-storm cleanup and rebuilding is saved.” And you may have thought — I wonder how they calculated that? But then life is too busy to go into the details, and the statement — that investment in actions to reduce risk shows a fourfold (or sevenfold) reduction in the cost of disasters is very compelling. It implies you could go out and raise the height of a flood wall or strengthen your house and after a few years you would reap a reward in significantly reduced losses.
Our sixth Exceedance conference makes a welcome return to Miami, this time at the waterfront InterContinental Hotel on May 14-17, 2018. The views over the Biscayne Bay, inspiring keynotes, over 75 informative sessions, demonstrations, engagement with experts in The Lab, and networking with 700+ industry professionals are all guaranteed. What else can we guarantee at Exceedance 2018? You will leave Miami with a new perspective on risk management, as we invite you to join us for our most transformative and immersive Exceedance yet.
It has been twelve months since I first visited Nepal, spending two weeks with Build Change, an earthquake engineering charity and RMS partner, to experience first-hand the impact that they are having in the country. Back then, Nepal was only just starting to come to terms with the huge amount of reconstruction work that lay ahead after the 2015 earthquake. While there was hope that the country could “build back better” it was going to be a long, hard road ahead, as I observed in my blog in January this year.
After my first visit, I made the decision to return to this remarkable country and volunteer with Build Change for a longer period. My ambition was to become more involved in the rebuilding work, and help Build Change plan for future post-earthquake reconstruction. Since arriving I have been struck by the contradiction that although so much has progressed, a lot of the same issues are still prevalent and are holding back real change.
Although tragic for everyone involved, some good can come from a devastating disaster as it does provide a unique opportunity to transform the building stock, and to “build back better”. Typically, many structures will have been demolished, or need to be removed. There will also be funding, whether it is via insurance payments, assistance grants and even international aid, to help support improvements. From an island in the Caribbean to a city in central Mexico, we could now institute these profound upgrades, so that for any repeat earthquake or hurricane, the damage and losses will be much reduced. Ironically, a disaster creates the best of all times to make improvements.
I invite you to explore the latest digital edition of EXPOSURE Magazine, which also hit the streets of Monte Carlo as a print edition for those attending Les Rendez-Vous de Septembre, and will be available at RMS events over the coming months.
There is a clear mission for EXPOSURE, which is “… to provide insight and analysis to help insurance and risk professionals innovate, adapt and deliver.” And change is in the air for all businesses in the industry, whether it is developing new opportunities, getting products to market faster, being more agile and efficient, or using data-driven insight to transform decision making.