Secondary Perils, Protection Gaps
Watch Guy Carpenter experts discuss secondary perils in Asia Pacific and how to evaluate and address gaps in coverage.
The effects of secondary perils vary, depending on where you are in the world. Guy Carpenter’s Karl Jones, Head of Global Strategic Advisory, Asia Pacific, and Apoorv Dabral, Head of Public Sector, Asia Pacific, join Asia Insurance Review to address secondary perils and the protection gap in the region.
For example, considerations of secondary perils arising from primary events are taking on increasing importance. In cases of tsunamis from an earthquake or landslides and floods following a typhoon, the damage can be larger from the secondary impact.
The need for effective modeling is also an issue, as Guy Carpenter has invested in modeling capabilities for flood in a number of regions, including China, Japan, Malaysia and other countries in Southeast Asia. Climate change overall is becoming increasingly a core part of the modeling proposition.
Mitigations and preventions through government initiatives are increasingly important in addressing these perils. Parametric solutions and insurance-linked securities (ILS) are playing increasing roles as reinsurance options.