“The Latin America needs to double the size of its insurance market to cover its societal protection gap.” This is what the Vice President of Reinsurance for IRB(Re), Daniel Castillo, said when addressing the impacts of climate change on the insurance and reinsurance sector during the Insurance Global Trends panel, yesterday afternoon (Sept 25), at Fides Rio 2023.
Castillo recalled that climate change has caused more frequent and severe catastrophic events. However, sector surveys indicate that only a small portion of catastrophic losses are insured. Even in developed countries like the USA and Canada.
“The main point when we talk about climate change is making the population and governments aware that the world is really changing. The protection gap is huge, especially in the catastrophic part. Climate change is not just an insurance and reinsurance problem, it is an economic and societal problem. At the same time, it shows that there is great potential for developing new protections for our society”, said Castillo.
The Vice President of Reinsurance at IRB(Re) highlighted that insurance plays a fundamental role in protecting companies and individuals against financial risks associated with extreme weather events such as hurricanes, floods and wildfires.
“Insurers can, for example, offer more affordable policies to customers who implement carbon emission reduction measures, such as installing renewable energy systems or sustainable construction practices. I believe that, in association with universities and research centers, we have a key role in climate research and its impacts”, stated Castillo.
The first of Fides’ four main panels, Insurance Global Trends also discussed the development of new products and services to expand insurance consumption. In addition to Daniel Castillo, André Medici, Executive Director of Universal Health Monitor; Clarisse Kopff, from the Board of Directors of Munich Re; Isabelle Santenac, EY Global Insurance Leader; Ivan Luiz Gontijo Jr., President of the Bradesco Seguros Group; Jeremy Goodman, President of Reinsurance Solutions at Aon.
