As the insurance-linked securities (ILS) market continues to grow, its role in addressing the widening protection gap is coming into sharper focus, with Holly Turner, Climate Specialist at Schroders Capital, suggesting that every ILS transaction can help address this goal.
“Within climate adaptation, climate ‘resilience’ – the ability of a system, community or individual to anticipate, prepare, respond and recover from climate impacts and shocks – is critical. Insurance plays a vital role in supporting vulnerable communities to respond to these impacts, and can enhance the ease and pace at which recovery takes place,” Turner explained in a recent commentary.
The frequency and intensity of many different types of extreme weather events have been increasing.
According to WTW’s Natural Catastrophe Review 2024, estimates show that the insurance protection gap for natural catastrophes is around 60%,
FULL ORIGINAL PUBLICATION HERE