Page 20 - Insurance Times March 2024

In Nepal, road safety has been Chief Economist, says: "Climate change most impacted by the four weather
consistently neglected due to the is leading to more severe weather perils of all 36 countries, while also
absence of dedicated legislation. Road events, resulting in increasing impact being exposed to high probability of
safety expert Keshav Adhikari says that on economies. Therefore, it becomes hazard intensification. The US is
the government primarily focused on even more crucial to take adaptation second-most exposed. At USD 97 billion
road construction, overlooks crucial measures. Risk reduction through (0.38% of GDP) as of today, it
aspects such as road safety and adaptation fosters insurability. experiences the highest economic
reinforcement. Consequently, roads The insurance industry is ready to play losses in absolute terms from weather
are transforming into perilous events worldwide and at the same
an important role by catalysing
pathways for both vehicles and time, a medium probability that
passengers. investments in adaptation, directly as hazards will intensify.
a long-term investor and indirectly
"There is a lack of interest in through underwriting climate- In general, countries with sizeable
formulating policies and laws aimed at supportive projects and sharing risk insurance protection gaps and where
mitigating financial losses resulting the establishment of loss mitigation
knowledge. The more accurately
from accidents," says Adhikari. - Online climate change risks are priced, the and adaptation measures lags the rate
Khabar
greater the chances that necessary of economic growth, are most
investments will actually be made." financially at risk from hazard
Economic losses set to intensification. Fast-growing Asian
Based on findings from the
increase due to climate Intergovernmental Panel on Climate economies like Thailand, China, India,
and the Philippines are most
change, with US and Change (IPCC), Swiss Re Institute's new vulnerable according to the report.
report "Changing climates: the heat is
Philippines the hardest (still) on" analyses where hazards are

hit, - Swiss Re Institute likely to intensify and overlays it with Achmea considers selling
Climate change will have a larger its own estimates of economic losses its life insurance portfolio
impact on economic losses in the resulting from the four major weather According to sources familiar with the
future, according to Swiss Re Institute. perils as of today. This provides a view matter, Achmea is considering the
A new analysis of 36 countries ranks of the possible direct economic possible sale of its life insurance
the Philippines and the US as the most implications if weather-related natural portfolio.
economically exposed countries today, catastrophes intensify due to climate
where hazard intensification is likely to change. The Dutch insurer is said to have
occur due to climate change. With annual economic losses of 3% of instructed JP Morgan to evaluate the
Jérôme Jean Haegeli, Swiss Re's Group GDP as of today, the Philippines is various options for the transaction
which is valued at 3 billion EUR (3.2
billion USD).
Fitch Withdraws Sri Lanka Insurance Corp's Ratings
on Reorganisation
Neema Insurance Managing
Fitch Ratings has withdrawn Sri Lanka Insurance Corporation Limited's (SLIC)
'CC' Insurer Financial Strength (IFS) Rating on Rating Watch Negative and Agency opens London office
'A(lka)' National IFS Rating on Stable Outlook. Neema Insurance Managing Agency
Fitch is withdrawing the ratings of SLIC as SLIC is undergoing a reorganisation. will inaugurate a new office in London
Accordingly, Fitch will no longer provide ratings or analytical coverage for on 12 February 2024.
SLIC. Its launch is part of the Mauritian

SLIC transferred its insurance operation to two new fully owned subsidiaries company's strategy to evolve from a
- Sri Lanka Insurance Corporation General Limited and Sri Lanka Insurance regional company to a global player.
Corporation Life Limited - on 1 February 2024. SLIC is now a holding company In operation since 1 October 2020,
with no direct insurance operations, while the two new subsidiaries will be Neema is a licensed underwriting
regulated by the Insurance Regulatory Commission of Sri Lanka. - agency based in Mauritius, that mainly
lankabusinessonline.com targets the African market.

The Insurance Times March 2024 19