Page 20 - The Insurance Times October 2024

events like hurricanes and earthquakes ambitious declaration by the General rise. The event featured plenary ses-
can result in substantial losses, the re- Assembly, set for September 2026. sions and panel discussions, with par-
insurer noted that non-peak perils— “The declaration presents an opportu- ticipation from over 100 speakers. Yang
particularly severe convective storms nity to secure the prosperity, dignity, highlighted alarming projections, esti-
and floods—are now major contribu- mating that sea levels could rise by 20
and rights of all affected countries and
tors to insured losses, which frequently communities,” Francis noted. He centimeters between 2020 and 2050,
surpass $100 billion. potentially displacing up to 1.2 billion
stressed that the declaration must re-
In the US casualty market, the rein- affirm the inalienable rights of sover- people.
surer observed a trend of escalating eignty and statehood, which remain “For those on the front lines, the im-
damages awarded by courts, which valid regardless of the effects of rising pacts of rising seas threaten liveli-
has created reserve pressures across sea levels. hoods, damage settlements and vital
the sector. Munich Re executives em- infrastructure, and, in the worst cases,
The Prime Minister of Tuvalu, Feleti
phasized that this issue remains a ma- Teo, warned that sea level rise poses force the displacement of entire island
jor concern in 2024. populations and coastal communities,”
an existential threat to the economies,
Regarding cyber risk, Munich Re cultures, and lands of small island na- Yang stated.
stressed the growing importance of tions. He pointed out the devastating Yang emphasized the necessity for
the cyber reinsurance market, which is effects already being felt, including countries to collaborate on building
expected to expand significantly in the saltwater intrusion into freshwater resilience, addressing disaster vulner-
coming years. The company views sources and intensifying storms that ability, and implementing effective cli-
cyber as a critical area for growth and damage crops, villages, and infrastruc- mate adaptation strategies. He called
specialization. ture. for improvements in coastal manage-
ment and stressed the importance of
"Natural catastrophes, casualty, and Wopke Hoekstra, the European Union’s
halting global warming.
cyber are emblematic of Munich Re’s Climate Action Commissioner, focused
core strengths. As a risk carrier with on the dual priorities of mitigation and “Above all, we must stop the global
significant financial resources and deep resilience. He stressed the need for warming that is driving sea level rise
expertise in handling complex risks, we immediate action to reduce emissions, by recommitting to our goal of limit-
provide our clients with stability in reiterating the EU’s commitment to ing temperature rise to no more than
managing claims volatility. At the same achieving climate neutrality by 2050 as 1.5 degrees,” he urged.
time, we remain committed to discon- outlined in its climate law. UN Secretary-General António
tinuing any business that does not “There is no time to bury our heads in Guterres echoed the call for swift, de-
meet our technical standards for sus- the sand,” Hoekstra said, urging coun- cisive action to mitigate sea level rise,
tainable profitability," said Stefan emphasizing the need to protect lives
tries to maintain their focus on reach-
Golling, a member of Munich Re's by implementing early warning sys-
ing net-zero emissions. He added that
Board of Management. tems worldwide by 2027, as outlined
while emissions reductions are essen-
Munich Re also commented on the tial, they will not be sufficient, calling in a UN initiative. He called on nations
broader reinsurance landscape, noting for enhanced resilience measures to to present new climate action plans
that the sector has achieved a bal- combat rising climate risks. that align with the 1.5°C target, cover
anced environment amid strong de- all sectors, and expedite the phase-out
of fossil fuels.
mand, creating a stable outlook for Global Action Needed to
future growth. Guterres specifically called on G20 na-
Address Sea Level Rise: UN tions—responsible for approximately
Laying the Groundwork General Assembly Presi- 80% of global emissions—to lead these
efforts. He also underscored the impor-
for Future Action dent tance of finance, stating, “We need a
Former General Assembly President The situation has reached a critical strong finance outcome at COP29 this
Dennis Francis applauded UN Member point, according to UN General Assem- year, including new and innovative
States for their commitment to ad- bly President Philémon Yang, who re- sources of capital.” The upcoming UN
dressing sea level rise, describing the cently hosted a high-level meeting to climate change conference, COP29, will
meeting as the starting point for an discuss the growing threat of sea level be held in Azerbaijan this November.

18 October 2024 The Insurance Times