Climate changes could make premiums unaffordable: QBE Insurance


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Climate changes could make premiums unaffordable: QBE Insurance

On Monday, the 17th of February 2020, the Sydney-based Australian insurance company, QBE Insurance, Australia’s No. 2 multinational insurer after the Insurance Australia Group, employing over 12,000 workers in 31 countries across the globe, had casted an inevitable holocaust over the global insurance market saying a swathe of impacts of climate changes ranging from a nearly eight-month long bushfire in Australia to severe droughts in Africa to wildfires in Siberia held every potentiality to make some premiums unaffordable, in particular for the customers heavily exposed to severe weather events, adding the global insurance markets could soon meet with a swarm of “material risks” over their operations across the world.

In point of fact, latest alarming comments from the Australia’s second-largest insurer came forth as the Australian insurer’s net expenses due to extreme weather nearly doubled up in 2019 to $193 million from a prior figure of $106 million on an annualized basis in Oceania, a majority of which was prompted by a number of unexpected floods in the continent’s north-east coast alongside a rampaging bushfire across the country.

However, in its Monday’s (February 17th) statement, the Australian insurer had affirmed that it could manage higher claims in shorter terms by assessing event frequency and a revamp in its capital planning, but in a longer-term outlook, premiums would likely to be unaffordable over the coming years if the global leaders could not curb out a sequel of weather-related apocalyptic incidents.