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Climate change amplifies catastrophe insurance rates

Achim Kassow, board member at reinsurer Munich Re, said that the cost of insuring against natural disasters is expected to rise due to the increasing frequency and severity of these events. Factors like market volatility, rising inflation, and interest rate hikes are also intensifying the upward price pressure. Kassow, who oversees the Asia-Pacific for Munich Re, noted growth in insurance availability in regions like Asia-Pacific, Africa, and the Middle East despite higher prices. Munich Re has upped its exposure to these regions by 21.5% since 2020. He emphasised the role of insurance in risk-taking, especially in areas more susceptible to climate change impacts. A recent Munich Re report highlighted that only USD3bn of the USD7bn in losses from natural disasters in the Asia-Pacific in 1H 2023 was insured.


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