Gepa Jansen-Klaus, Senior Client Underwriter Nordics and Operational Lead CIS markets at Swiss Re, revealed that insurance companies are expected to double their spending related to natural disasters in the next 10 years.
Speaking at a panel discussion titled "Insurance under the impact of climate change" as part of the Azerbaijan International Insurance Forum - AIIF-2024, Jansen-Klaus noted that while insurers' payments for natural disasters have increased by 30% in the last three decades, climate change is set to become more widespread globally.
"Every time I visit Baku, I witness its development. The city boasts many beautiful buildings, which are valuable for the insurance market. There is much work to be done in this area," she added.
The Swiss Re official emphasized the need for increased insurance coverage, stating that currently, 75% of the world's population is unprotected by insurance. Swiss Re's mission is to reduce this number, she said.
Jansen-Klaus cited an analysis that revealed 36 countries in Asia and North America were significantly affected by climate change last year, with natural disasters costing those countries nearly $200 billion.
The recent earthquake in Türkiye and Syria serves as a stark reminder of the importance of insurance coverage, she said, adding that the disaster inflicted $8 billion in damage to their economies, with 90% of the losses not covered due to lack of insurance.