Underinsured SMEs most at risk against Climate Change | 25% Growth: Usage-Based Insurance Will Ride w/ EVs Demand | Israeli Tech: The Big Picture...
Dikla Wagner
On Israel's top 12 Fintech influencers ??Keynote speaker / MunichRe ????, Head of Tech Scouting ????
Munich Re: Underinsured SMEs most at risk against Climate Change
Climate change is rising as is the threat to lives, property, and well-being, yet nations and companies are underinsured against environmental disasters. Floods, earthquakes, and storms caused an estimated $65 billion in losses in the first half of this year. Although this is less than the US$105 billion in losses recorded last year, it is concerning that insurance coverage for such losses has not increased.
Small business owners are frequently uninsured or underinsured, particularly in low-income countries. In other words, it could be disastrous for these businesses if they do not have adequate insurance coverage to recover financially in the event of a severe natural disaster.
There are several reasons why businesses do not have enough insurance coverage, including risk perception and limited access to risk-related information. Under-insurance can also be caused by the undervaluation of assets due to a lack of information and awareness. For this reason, reputation management is one of the most important components of risk management.
So what should be the solutions?
According to Ernst Rauch, Chief Climate and Geoscientist at Munich Re, to close the protection gap, the industry must continue to develop data and analytical tools.
This entails gaining a better understanding of the risks by collecting and analyzing data on natural disasters, cyber-attacks, and global supply chains. More product, process, and distribution innovations are required to reach previously uninsured consumers and risks.
Usage-Based Insurance Will Ride With EVs Demand To Arrive at 25% Growth
The global usage-based insurance market is predicted to increase at a compound annual growth rate (CAGR) of 25.3% from $43.31 billion in 2021 to $54.25 billion in 2022. The worldwide usage-based insurance market share is then predicted to expand at a CAGR of 24.9% to $132.02 billion in 2026.
Likewise, according to McKinsey electric cars will account for 10% to 50% of new-vehicle sales by 2030, propelling the automobile usage-based insurance industry.
Is this the ultimate multi-billion-dollar growth recipe for insurers? It is, certainly, for me.
3 Segments of Global UBI to get familiar with,
Cyber Insurance - Demands Is Now Overwhelming Supply
With rising demand and risky third-party risks, cyber insurance companies are scrutinizing organizations' security postures to the point of restricting or refusing coverage depending on the availability of specific technology.
Cyber insurance premiums and payments have skyrocketed in the last three years as attack surfaces and adversary strategies have grown.
Customers must comply with increasing regulations, such as installing multifactor authentication, as insurance carriers struggle to keep up with the fast expansion of cybersecurity threats.
The cost of cyber assaults has risen so dramatically that cyber insurance providers are going even further.
While rates have risen, businesses may keep expenses under control by making more informed risk decisions about the goods and technology in their environment.
At times, it appears that businesses depend too much on cyber insurance instead of upgrading their security postures or implementing controls. The cyber insurance industry is now transferring more risks to carriers.
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UK and France To Be The Fastest Insurtech Market in Europe
From 2020 to 2025, the InsurTech market is expected to increase by USD 33.73 billion at a CAGR of 45.28%.
The InsurTech market is divided into two sections: geography and value chain positioning.
The need to improve business efficiency is significantly driving the growth of the InsurTech market, though factors such as high investment costs may stymie market growth.
The premium trend in the market is investors collaborating with InsurTech firms.
InsurTech market share increase by the marketing and distribution sector will be considered during the projected period, and 47% of the market's growth will come from Europe.
In Europe, the primary markets for InsurTech are the United Kingdom and France. This region's market growth will outpace that of North America and the Middle East and Africa.
Israeli Tech: The Q2 2022 Big Picture The World Should See
The IT sector was the main casualty of this turbulence, with businesses losing 50% to 80% of their value in only a few months, making it the worst first half for Israel's capital market since the 1970s.
Given this circumstance, it's natural to hold off on private firm investments until the music stops. We can already see the level of investment amounts for the entire year 2020, with 395 investment transactions totaling $9.8 billion. However, the facts paint a different picture: practically all components of the Israeli IT investment sector point to a steep slump.
The majority of the capital lost between the highest quarterly invested amounts in Q4/2021 and the lowest in Q2/2022 came from bigger rounds. These mega-rounds are fast drying up, and for the first time in five quarters, they have reverted to 50% of total sums.
The chart below summarizes the current state of Israeli technology.
M&A deals plummeted dramatically from 2021 levels, and it's not only due to a dearth of IPO/SPAC transactions.
Public market volatility is likely influencing potential acquirers, since H1/2022 witnessed just 56 mergers and acquisitions, one of the lowest amounts for semi-annual exit data in the recent decade.
In comparison to 2021, the infusion of new money for the herd was lower.
According to estimates, around 700 new start-up firms were founded in 2021, and the numbers for 2022 appear to be comparable.
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Disclaimer: Personal thoughts and views are my own and do not reflect the interest of any companies and institutions.
Best, Dikla ??
Co-founder @ Viridian analytics | Battling climate change through big data & AI | Impact Entrepreneur | Biz Dev | Microsoft AI for Good Alumni | I'm hiring
2 年Ori Ofek