Under-insured China vulnerable amid rise in natural catastrophes: Munich Re
- More extreme weather is likely with climate change and this is of concern in China, where record temperatures have been logged this summer, warns Munich Re
- China has had large economic losses from extreme weather in the past, but very little has been recouped in a country with an insurance gap of 90 per cent
The recent spike in natural catastrophes is a threat to citizens and economies around the world, and raising awareness about insurance is particularly relevant to underinsured China, as the industry can help alleviate some of the financial pressures on companies and governments reeling from the impact, according to officials at German insurer Munich Re.
Experts warn that more extreme weather is likely with climate change and this is worrisome for the world’s second largest economy China.
Record temperatures have been recorded this summer across China, which is particularly vulnerable to heatwaves and floods, and where an astounding 90 per cent of the associated losses remain uninsured, they said.
“What we observe is that especially the risk from flooding in China, is the most relevant risk ever or has been the most relevant risk from natural disasters over the last decades,” said Ernst Rauch, chief climate and geo scientist at Munich Re.
“In China, the warm season started very early in April. In some regions, you had temperatures above 40 degrees centigrade (104 degrees Fahrenheit). Records were broken, and this is now going on as of today.”