COVID-19 Crisis Renews Attention on Systemic (Uninsurable) Risks
September 30, 2020 by L.S. Howard
Reinsurers and insurers for years have been worried about systemic risks – those uninsurable risks with the potential of surpassing the capital of the industry. The COVID-19 crisis has renewed attention on these risks, which could also include a global cyber event and climate change. These risks are so worrying that rating agencies, such as AM Best, are taking note.
The question about the insurability of systemic risks is not new, said Torsten Jeworrek, CEO of Munich Re’s reinsurance business, during a virtual media briefing held in lieu of meetings previously held at the reinsurance Rendez-Vous de Septembre in Monte Carlo.