Justin Davies, Head of EMEA at Xceedance, has said the insurance industry must prepare for further ‘gray rhino’ threats – large, highly destructive but predictable events that are often ignored.
Writing in Emerging Risks Justin states that the COVID-19 pandemic has been wrongly described by many as a ‘black swan’ event – a surprising catastrophe that no one could have foreseen. He notes the world has recently dealt with outbreaks of the Severe Acute Respiratory Syndrome (SARS, in southeast Asia) and the Middle East Respiratory Syndrome (MERS).
“A defining characteristic of the global insurance and reinsurance markets is the ability to respond creatively to catastrophic events by developing innovative products to manage the risk,” he writes. “I have no doubt that some carriers are already developing new products designed to mitigate against the risk of future gray rhino events.”
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