(Finance) – “The increase in natural disasters represents one challenge increasingly significant for the insurance industry and financial services as a whole. In 2023 globally they were registered 270 billion dollars in losses economic, e only 100 billion had coverage insurance”. This is what was stated by Giulio TerzariolCEO Insurance of Generali, in his speech at the FT Global Insurance Summit, adding “in Europe just about a quarter of the damage caused by climate-related disasters has insurance coverage and, looking at theItalyonly 3.4% of SMEs are covered for floods and 8.4% for earthquakes.”
“According to aEIOPA analysis, covering the protection gap through dedicated insurance solutions allows the economy to recover more quickly and acquire resilience and solidity. Large-scale disasters indeed have a negative effect on GDP growth if the share of insured losses is low, while a high insured rate can stimulate recovery by providing the necessary funds for reconstruction in a timely manner, reducing uncertainty and supporting aggregate demand and investment”.
“THE demographic trends – explained Terzariol – they represent the second point of growing importance. According to United Nations estimates, the current world population of 7.6 billion is expected to reach 8.6 billion in 2030 and 9.8 billion in 2050. The lower birth rate together with greater longevity will lead to a different composition of the population and to a increase in elderly age groups compared to younger generations. A larger elderly population will generate new health care needs and will put it to the test sustainability of pension systems“.
“On the other hand, the younger generations, born digital, have diversified spending behaviors which require insurers to develop simple, attractive and convenient solutions. As insurers – states the Generali manager – we will have to manage the implications of these changes, combining solutions capable of mitigating them with a consultancy approach. This means offering functional products at all times most significant to people: family, well-being, work and mobility, adapting our offer and customer experience to their needs for protection, assistance, prevention and well-being”.
“There is an urgent need for greater risk mitigation build a sustainable system that protects everyone: insurance and reinsurance must do their part, but they are not enough on their own. The partnership between public and private – he concluded – they are necessary to find the right balance and create a market that works for all participants”.