CLIMATE CHANGE
“ 2019 was not the new normal . The world ’ s weather will continue to become ever-more extreme and people around the world will continue to pay the price ”
— Christian Aid , Counting the Cost of 2019 : a year of climate breakdown
operate and the risks that it poses to their customers . New , technologydriven insurance firms — known as insurtechs — are able to be more agile than their legacy counterparts , allowing them to offer more value to their clients , and generate more value for their shareholders .
Here are some of the global megatrends that risk disrupting the insurance industry , and some of the insurtechs using AI and ML to navigate these increasingly uncertain waters .
CLIMATE CHANGE
How do you insure against an existential threat ? As global carbon emissions continue to rise , and the world creeps ever close to a 2 ° C temperature increase compared to pre-industrial levels , the effects are becoming increasingly severe . Last year , wildfires in Australia killed over one biilion animals , endangered hundreds of species , and caused an estimated US $ 100bn in damages to homes and infrastructure . Global flooding , cyclones and storms meant that , last year , Christian Aid estimated that global damages due to weather-based disasters exceeded $ 140bn , and the trend shows no sign of slowing down . Christian Aid ’ s report makes it clear that “ 2019 was not the new normal . The world ’ s weather will continue to become ever-more extreme and people around the world will continue to pay the price .”
The challenge laid at the feet of insurers is to adapt to these challenges without raising premiums in a way that financially cripples customers . In the United States , the number of people living in the midwestern flood plains
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