Climate Risks: Insurers Tech Solutions | Munich Re Global Disaster Cost | 7 Year Overview of Israel VCs | Insurance Major Barriers | Tech w/ High ROI
Dikla Wagner
On Israel's top 12 Fintech influencers ??Keynote speaker / MunichRe ????, Head of Tech Scouting ????
Climate Risks: What Tech Solutions Insurance Must Take Leverage
It was my great honor to share my insights on this vital topic and have them published by one of the leading economic newspapers in Israel CTech by Calcalist.
Due to insurers' expertise in identifying, quantifying, controlling, and forecasting risks, insurance plays a significant role in a world where climatic hazards are rising.
The insurance sector will need modern technologies to respond to and reduce climate risks. The necessity for insurers to create a climate resilience plan is emphasized in the Capgemini and Efma-published World Property and Casualty Insurance Report 2022. The economic effects of climate change are significant. These hazards require attention from insurers and banks as risk transfer strategies.
Here are some solutions we are watching and suggesting:
Advanced mapping: Data sources and AI can help in determining how catastrophes like floods, wildfires, and storms will affect a specific area. With more accurate predictions of climate hazards, businesses can insure against them, reduce their impact, and protect their sector from losses. Furthermore, it offers versatility.
Climate-specific stress testing: Insurers may utilize stress-testing technologies with sophisticated analytics to understand the effects of climate change on portfolios. Insurers can predict appropriate pricing and portfolio adjustments by combining extensive climatic data with macroeconomic assessments.
Parametric Insurance: For agriculture or climate-related risks, for instance, these Insurtech-based solutions create compensation parameters and automatically apply them to individuals who fit the requirements. By expediting the process of paying out compensation, they may effectively rearrange the claims process and increase consumer satisfaction. Simple in its core, parametric insurance pays out in accordance with a predetermined plan rather than a drawn-out claims adjudication procedure. It covers the likelihood of a preset event occurring.
Advanced tracking and reporting technologies: ESG standards have grown in importance for businesses in all sectors. Insurers may monitor, report, and disseminate ESG-relevant data with the use of new insurtech solutions.
Climate Risk is not like a fairy tale anymore. We in the insurance sector must play a vital role not just in the industry but also in humanity.
Munich Re: Global Disaster Cost Insurers $34 B in H1 2022
About US$34 billion was spent by insurers on global natural disasters in the first half of 2022. The total losses from floods, earthquakes, and storms totaled $65 billion, or just over half of that amount.
An above-average $22 billion in total losses were recorded in the Asia-Pacific region. Insured losses from severe thunderstorms with tornadoes in the United States were $19 billion.
As per Munich Re, a single thunderstorm front that caused tornadoes in early April destroyed assets worth over $3 billion, of which three-quarters were insured. This is an ideal illustration of how high insurance density can help absorb the economic shocks of natural catastrophes.
Extreme heat, drought, and wildfires are becoming more common worldwide, the reinsurer continued, and the Intergovernmental Panel on Climate Change cautioned that insurers must adopt loss models.
Previously warm days will now be hot days, and previously hot days will now be extremely hot days. Wildfires and droughts are a direct result of this. Even if each of them may have been distinct incidents with distinct reasons when they are all considered collectively.
One thing becomes very clear: climate change is having a significant impact.
7-Year Overview of VC Tech Fundings In Israel
Key participants in the Israeli high-tech ecosystem are VC funds, which provide a crucial source of capital for new businesses.
In the past, local investors carried out the majority of the investment.
Foreign investors' activities increased by 20 in 2021. Overall, foreign investors have raised the allocated amounts relative to those of the domestic VC Funds by almost 10 times since 2015 in Israel.
While historically the total amount invested in the original investment was more than the follow-on investment, the 2020 and 2021 data show that follow-on investments were greater than the initial investment.
领英推荐
Big Data was the most popular vertical for VC investment from 2015 to 2020 (by the number of businesses), but in 2021 it fell to third place. The top five industries by the number of businesses were Cyber Security (47), FinTech (45), Big Data (42), IoT (37), and Digital Health (37) in 2021.
Full credit and thanks to IVC Research Center and Leumi Tech
The Major Barriers Insurance Must Overcome
Many insurance companies are trying to adapt their strategies to these changes. Here's a summary of some of the challenges facing the insurance industry today, as well as what they're facing in the future.
Social Inflation
Insurance companies may be forced to raise premiums if their reserves become insufficient due to social inflation. The price of insurance premiums may rise if social inflation is not contained.
Climate Change
Extreme weather-related incidents have compelled the insurance sector to take climate-related risks seriously. This problem cannot be ignored given the increasing losses. Property damages covered by insurance may rise as a result of climate change. Ongoing activities may potentially be significantly impacted by it.
Overflowing Customer Inquiry
50% of insurance businesses are behind other industries when it comes to technology adoption. Some issues they need to tackle are Lack of resources to upgrade business, commissioning, policy administration, underwriting, and more.
Leveraging Large Data Volumes
The insurance industry has access to a great amount of data from numerous sources. Utilizing this data has specific difficulties, such as managing and storing the constantly expanding data. Gaining an understanding of consumer behavior, insurance underwriting, claims, marketing, and many other areas may be done with the help of this data.
Insurance companies can develop effective strategies to address these issues by comprehending their nature. In addition, despite the obstacles, they can pull ahead of the pack and succeed by investing in emerging technology and modernizing systems.
Tech In Insurance To Yield Highest ROI
Dear Insurtech and Innovation Friends,
Like what you read? Please leave me with your Likes, Shares and Subscribe.
Disclaimer: Personal thoughts and views are my own and do not reflect the interest of any companies and institutions.
Best, Dikla ??
Titles Ain't Relevant, Your Legacy Is ! ??
2 年Insightful, Thank you!