1 / 24

Insurance Companies Management Plans for Natural Hazards September, 2013

Insurance Companies Management Plans for Natural Hazards September, 2013. Nat Cat Risk Map. Turkey Earthquake Risk Map. Some Serious Events in 2011. New Zeland E/Q, Japan E/Q, Turkey E/Q ABD , Europe Snow Storm England , ABD Taphoon, Tornado Irene Hurricane.

phelan-orr
Download Presentation

Insurance Companies Management Plans for Natural Hazards September, 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Insurance Companies Management Plans for Natural Hazards September, 2013

  2. Nat Cat Risk Map Turkey Earthquake Risk Map

  3. Some Serious Events in 2011 • New Zeland E/Q, Japan E/Q, Turkey E/Q • ABD , Europe Snow Storm • England , ABD Taphoon, Tornado • Irene Hurricane

  4. Largest Natural Catastrophes 1970-2011

  5. Insured Catastrophe Losses 1970- 2012

  6. One of the Biggest Natural Hazards in 2011 in Thailand Flood 12 Mia USD The Biggest Natural Hazards within last 20 years is Sand Hurricane in America more than 25 Mia USD in October 2012 4

  7. Natural Hazards Event Claims in Turkey Due to Global Warming (Unexpected Flash Flood & Wind Storms) also because of Geological conditions of Turkey Earthquake events on top of this insufficient risk conditions has created heavy effect on insurance companies in last 18 Months. Samsun Flood (2011 July) İstanbul Storm (2012 April) Ordu Flood (2011 August) Egean Flood (2011 January) Van Earthquake (2011 October) Antalya Flood (2012 January) Antalya Flood (2011 October)

  8. Catastrophic Events in 2012 Over 300 catastrophic events occurred in 2012 168 were natural catastrophes, while the remaining 150 events were man-made disasters Total economic losses estimated at about USD 186 billion 2

  9. Catastrophic Events in 2012 At least nine events triggered losses ofUSD 1 billion or more; Hurricane Sandywas the most expensive at USD 35 billion. %42 of Total Damage in Asia 2 3

  10. List of Major Losses in 2012 according to Loss Category 2 3 5

  11. 2012 Reinsurance Impacts Reinsurer Capital (USD Billions) 10% -3% 17% • Reinsurer capital has continued to increase throughout the first 3 quarters of 2012 to a new peak level • Supply continues exceed demand in most global regions 18% -17% InsurerCapital 9% 1% 12% 34% • Insurer capital increased 9 percent from year end 2011 to Q3 2012, back in line with historical averages for the industry. • Reinsurance demand continues to be flat to down slightly in peak zones as capital increases and insurers continue to retain more risk. -29% 8 5 3 2

  12. Important Catastrophe Losses Source: Munich Re 2 3 5 8

  13. Total Cat Protection in Turkish Insurance Sector since 2010 Total Cat Protection in Turkish Insurance Sector 6.47 Milyar Euro Turkish Cat Protection Cots increase by %15 Source: Munich Re 2 3 5 8 10

  14. On the Other Hand Climate Change Is Happeningand Natural Hazards on Increasing Trends • Potential increased frequency and severity of storms • Rising sea levels • Potential increased frequency and severity of drought • Natural resources stresses • Increased severe weather events • Flood • Hurricane winds • Ice Storms • Fires … • Earthqukaes

  15. Environmental Impacts Water EnvironmentalImpacts Energy Biodiversity Waste Consequences Insurance Clean Air/Pollutants Service delivery Fuel/Transport Heat/Sun Carbon/Greenhouse Gas emissions Financial Cold/Snow/Ice Legal High Winds Storm Market changes/demands for services Extreme Rainfall People/health & Social care Procurement Flood Planning Drought

  16. What is the Role of Insurance in Adaptation to and Mitigation of Climate Change Risk ? • History / Demonstrated Record of reducing risks • Exploration into emerging markets • Reduction of Fire Risk / Improvement of Existing Building Stock • Improvements to Worker Safety • Improvements to Vehicle / Driver Safety • Risk Mitigation in Deployment of New Technologies • Policy makers should engage insurance industry expertise and capital to most efficiently and effectively adapt to and mitigate risks of climate changeandnaturalhazards • After all … insurers are in the business of risk … Climate Change Risks and Opportunities Risks: • Failure to climate proof creates difficulties in securing investment and/or insurance cover • Potential liabilities if climate change is not factored into long term decisions about the future Possible impacts: • Insurance Policies: Check Insurers stance on undefended flood risks and impact on premiums • Future Developments: improved specification that takes account of future climate is likely to be cost effective in most cases Opportunities/Controls/Mitigation • Evidence of climate proofing enhances reputation with all stakeholders, provides security for investments and an opportunityto reduced insurance premiums 16

  17. The Role of Insurance Sector to Natural Hazards ADAPTATION Interaction with Policymakers MITIGATION Arrangement Emergency Plan, Early Warning etc. 17

  18. Insurance Companies Natural Hazards Management Before Claim • Increasing the Risk Awarness of the Risk • Maping of the Risks and Classfing and Pricing Models • Risk Assesment / Selection • Following the Technical Rules / Regulations / Precautions • Appropriate Scope of Wording and Clauses in accordance with the tariff and • regulation in force • Monitor the Catasrophic Accumulation coming from the policies in the portfolio 18

  19. Insurance Companies Natural Hazards Management Before Claim • Focused risk-management efforts include use of geographic information systems to better understand and pinpoint risks, land-use planning, flood control programmes, mitigation along coastlines, cloud seeding to divert hail storms, tightened zoning, improved weather forecasting and storm warning systems, and public spending on disaster preparedness and recovery • To buy eough Natural Catastroping Reinsurance Protection in paralel with the existing company cumulative sum insured • To Establish one additional data storage area in a different place far away the main buiilding where can not be impacted afetrteh same event • Creating Common Data Bank within the Market wshowing all existing insured details ( such a Tramer for motor business ) 19

  20. Insurance Can Be Applied to Facilitate Mitigation & Adaptation to Climate Change Risk Before Claim • Insurance focuses on risks to private assets • Insurance is the ultimate economic shock absorber • Insurers have also developed disaster preparedness andrecovery plans, and participated in the formulation ofbuilding codes to make buildings more disaster resistant • Insurers are creating products today to facilitate adaptation and mitigation to climate change risk

  21. Insurance Companies Natural Hazards Management After Claim • Business Continuty Plan • 1) Personal Safety • * If hit by an natural hazards within office hours • * If hit by an Natural Hazards after Office Hours • 2)Fırst Aid and Building Safety • 3) Partners and After Event Coomunication • 4) Copamny – Staff First Commnunication After the Event • 5) Situation Analysis and BCP Invacation • 6) After event Actions – Coordination - Commnunication 21

  22. Insurance Companies Natural Hazards Management After Claim • Prepare The Business Continuty plan and Pre Agrement with the Third Parties • Claim Adjusters • Car Reapirer • Restoration Companies • Suppliers ( Spare Parts ect ) • Lawyers • Ect. • Rough / Quick Estimation of the Size of the Natural Hazard • Decide and Establish Immediate Actions • Organize the Possible Risk Minimaze Actions

  23. Insurance Companies Natural Hazards Management After Claim • Communication with Reinsurers • Claims Notification • Claim Handling • Advanced Payment ect • Manage the Cash Flow

  24. “Lets manage the risk not manage the damage” Thanks…

More Related