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An insurance expert: for the establishment of a brokers’ federation - Egyptian insurers urged to raise rates - AM Best: negative outlook for the SCOR group - Merger between SALAMA and Takaful Emarat - Saudi Arabia: Motor insurance coverage does not exceed 50% - Bahrain: BIBF launches a professional certificate in insurance - Egypt: Russia-Ukraine war and Corona affected the insurance sector - Qatar: Top insurer and leading investment bank form joint venture - Saudi Arabia: “SAMA”: Consumers pay 27.22 million riyals per day to insure their vehicles - Emirates: An upcoming merger of three insurance companies - Tunisian insurance companies: 2021 ranking - Egyptian insurance market in 2021: turnover by branch - Partnership between SCR and AIG - Saudi Arabia: Minister of finance: a new regulator for the insurance sector soon - Kuwait: “Insurance Regulation”: 24 companies licensed to provide compulsory car insurance in Kuwait - Financial Sector Development Program: Saudi Arabia aims to increase the per capita insurance share - Partnership between Sanlam and NAPS - Middle East: NLGIC Group announces C-suite leadership team - Outstanding growth in life in Egypt - Saudi Arabia: insurance market to be difficult if the companies do not merge - Proposed merger between Al Sagr and Gulf Union Al Ahlia - UAE: Financial regulators host cyber risk supervisory college - Turkiye: Vehicle insurance premiums more than double - Egypt: The Insurance Federation restructures the general committees for a period of 4 years - Preparations for launching a reinsurance company in the UAE - Turkiye: Demand for supplementary health insurance soars - Egypt: Insurers renew calls for customers to reassess insured asset sums amidst rising inflation - Union Financière Holding increases its stake in Assurances Maghrebia - The Central Bank achieves the target number of appointments - Global marine insurance premiums rose by 6.4% between 2020 and 2021 - Non-life insurance market in the Middle East: 2021 premiums by country - 2021 Algeria insurance market: Turnover by branch - 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Turkiye: Insurance sector's GWP soar by 93% in 1H in nominal terms - Egypt: Regulator studies requiring insurers to maintain minimum level of investments - Dutch Insurer NN Group’s H1 Profit Slips on Impact of Storm Claims - Weakening UK Regulators Would Undermine Financial Services, Bank of England Warns - Inflationary recession to impact insurance demand, drive claims costs higher: Swiss Re Institute - Kuwait: Reinsurer posts US$13m in 1H net profits - Zurich Insurance Reports 25% Increase in H1 Operating Profit, Beating Expectations - Cowbell Cyber links up with Swiss Re - UK Insurer Aviva Posts 14% Rise in H1 Operating Profit - Morocco: Govt to recommend tax surcharge on oligopolistic sectors - Wildfires Rage in France, Destroying Homes, Forcing Evacuation of Residents - UK Financial Services Firms Suffer From Record Skills Shortage - Malaysia’s non-life insurance segment outlook remains stable: AM Best - Saudi Arabia: Insurance market forecast to grow by 5-10% this year - 6th Saudi Insurance Symposium to spotlight compulsory insurance, innovation & growth - 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Egypt: Motor insurers eyeing 10% increase in premium income - Lloyd’s Insurer Hiscox to Provide Insurance for Ukraine Grain Shipments - $170bn of global insurance premiums at risk by 2027, research suggests - Lebanon: 2 years after Beirut Blast, operating environment remains tough for (re)insurers - Morocco: Insurers' counterparty risk remains under control - French Insurer AXA Posts 3% Rise in H1 Net Profit - Floods, Storms Drive Global Insured Catastrophe Losses of US$38B in H1 2022: Swiss Re - Société Centrale de Réassurance’s expansion cited as rating affirmed - Saudi Arabia: Central Bank approves merger between SABB Takaful and Walaa Insurance - Lloyd’s and Aon report reveals the highly interrelated risks of Ukraine conflict - Global Commercial Insurance Rates Rise 9%, Continuing Moderating Trend: Marsh - Global Claims Review 2022 - AXA tops list of largest EU insurers ranked by GPW - Global Natural Disasters Cost Insurers $34 Billion in H1 2022: Munich Re - Swiss Re returns to profit but H1 net income falls on investment result & Ukraine reserves - Motor insurance premiums lag claims inflation - Asia Pacific: Region faces Nat CAT economic losses of US$22bn in 1H - SCOR posts H1 2022 net loss as nat cats, war in Ukraine & COVID-19 hit profitability - Turkey: Insurers acknowledge the influence of Gen Z - Global: Lloyd’s-Aon report indicates how businesses can mitigate risks arising - India: Regulator considers several changes to insurance operations - Lloyd’s Insurers Preparing to Cover Ukraine Grain - Natural Disasters Cost Insurers $39B During H1 2022, 18% More Than Average: Aon - GCC: Insurance markets in the region sees P&C rates mostly hardening - UAE: National health insurer offers medical plans to investors and talents - One-Quarter of Firms Operating at Lloyd’s Reach 35% Target for Women Leaders - RenRe’s underwriting performance remains strong, but investments drive Q2 loss - Turkey: Regulator warns insurers against avoiding underwriting compulsory motor - Saudi Arabia: Insurers required to pay small motor third-party liability claims - IAG reports rise in net profits - Reinsurers need to rebuild confidence: Ariel Re CEO - Morocco: Insurance sector returns to pre-COVID levels - Egypt: Russia-Ukraine war affects tourism-related insurance business - Ukraine, Russia Sign Deal to Reopen Grain Export Ports While War Continues to Rage - Allianz Notes Rising Business Interruption Costs in Global Claims Report - Beazley’s H1 profit falls on investment losses as underwriting performance improves - Egypt: Insurers eager to invest more in digital technology - OS Climate Launches Tools to Help Firms, Investors Make Climate-Friendly Decisions - Guy Carpenter sees 9% revenue growth in Q2 as Marsh McLennan reports ‘another strong quarter’ - AM Best highlights Lloyd’s improved combined ratio in recent assessment - Africa: Several markets show robust real growth in premium income in 2021 - Insurers Want Safety Assurances Before Covering Ships Sailing in Ukraine Grain Corridor - Global insured losses from catastrophes above average at $39bn in H1 2022: Aon - Egypt: Insurance federation and regulator to develop sustainable insurance strategy - Saudi Arabia: SAMA data show net loss of over US$40m for insurers in 1Q - Saudi Arabia: SAMA issues model professional liability insurance policy for auditors - Oman: Regulator aims to improve health insurance claims handling - Swiss Re names Verisk’s Latarche as Chief Commercial Officer, Reinsurance Solutions - UK Regulator Pushes Insurers to Cut Premiums for Fire-Risk Apartments - GAIF 12th Webinar - UK Regulator May Lack Bandwidth to Push Post-Brexit Competitiveness: Policymaker - Top US P&C underwriters saw robust premium growth in 2021 - Saudi Arabia: Insurance Symposium to take place next September - China’s Tough COVID Policy Still Drags on Economy - ANZ Agrees to Buy Australian Insurer Suncorp’s Bank Operations for $3.3 Billion - AXA to sell a closed life & pensions insurance portfolio to Athora Germany - Turkiye: Call for support for insurance agencies - Allianz Aims to Grow Global Program Business with New Multinational Team - Munich Re’s COVID claims persisting beyond expectations: Jefferies - Integration of loss history, Archipelago’s latest product update - Algeria: National reinsurer's net profit jumps by 20% in 2021 - Natural Disasters Cost Global Economy $32B in Q1, With Only $14B Insured: Aon - SCOR Warns of Ukraine Conflict Impact on Q1 2022 Results - AM Best turns negative on French life and non-life sectors - Lockton launches Insights & Innovation Lab - Howden Acquires 2 Italian Brokers Nord Est Insurance Broker and ASI - UK Brokerage Group Jensten Simplifies Corporate Structure, Brands - AUB Group confirms Tysers discussions ongoing - New capital requirements in Japan are credit positive: Moody’s - AM Best assigns positive credit ratings to Fortitude Re - P&C reinsurers see profit & premium improvement: RAA - MAPFRE outlines new strategy, targets 6% premium growth - Insured losses from Australia floods now above $2bn, says ICA - India’s State-Run Insurer LIC Set to Launch Record $8 Billion IPO on March 11: Sources - QBE returns to profitability in 2021, helped by premium growth - Mosaic activates more capacity to meet transactional liability risks - Bahrain: Insurance market expected to grow at faster pace in 2021-2026 compared to 2015-2020 - Tokio Marine triples international profits through Q3 - Marsh McLennan appoints new director - Sompo International Opens German Headquarters in Cologne - Qatar: Several favourable factors fuel insurance market growth - AXA Completes Sale of Singapore Business to HSBC - UK Insurer Beazley Sees Opportunity (and Risk) in Cyber Market - GCC: Insurance industry predicted to grow at CAGR of 3.2% in next 5 years - GAIF: Insurance players discuss 3 major challenges at Rendez-Vous de Carthage - Aon’s Reinsurance Solutions contributes to robust revenue growth in 2021 - Beazley’s Digital Division Launches, Aiming to Transform Brokers’ Access - LMA Announces ‘At-the-Box’ or ‘In-the-Office’ Availability for Lloyd’s Underwriters - Natural Disasters Cost Insurers $116B in 2021, or 63% Higher Than Average: Gallagher Re - QBE Launches Sustainable Energies Unit to Support Clients’ Transition to Lower Carbon - Insurtech MIC Global Receives ‘In-Principle’ Approval to Launch Lloyd’s Syndicate - FERMA Launches Risk Management Tool for Remote Working - Allianz and UniCredit Expand Longstanding Multi-Country Bancassurance Agreement - UK Insurer First Central Weighs Sale That Could Value Business at £600M: Sources - UK Business Closures Jump 14% as Pandemic Takes Brutal Toll on Small Firms - Everest Re Group Signs UN Principles for Sustainable Insurance - Climate Risk Is Top London Market Challenge, IUA Survey Shows - In Both Hard and Soft Markets, Zurich Aims to Maintain Focus on Underwriting Discipline - UK Insurtech Zego Expands in Europe, Targeting £20B Fleet Insurance Market - Cyber MGA Resilience Becomes Lloyd’s Coverholder - Lloyd’s Weighs Future of Headquarters as Market Embraces Flexible Working - Reinsurers’ 2022 Profit Outlook Better Than Primary Insurers: Fitch - ‘Cybersecurity Failure’ Named a Critical Global Threat in WEF Survey Report - UK Cyber Insurtech KYND Receives £3.25 Million Investment from BGF - Canada’s Insured Catastrophe Losses Exceed C$2 Billion in 2021: CatIQ - Global M&A to Remain Strong in 2022 as Valuations Reach Record Highs: WTW - Fortitude Re Forms Bermuda Multi-Line Reinsurer, Buys U.S. Life Insurer - Canada’s Insurers and Banks Rethink Return-to-Office Plans Amid Omicron Concerns - Allianz completes $35bn reinsurance agreement with Resolution Life - January Renewals ‘Orderly’ but Loss-Affected Programs Saw More Challenges: Carpenter - Tokio Marine Appoints Hirai as CEO for Asia Region - Zurich Insurance to Sell Italian Life and Pensions Back Book to Portugal’s GamaLife - China Approves HSBC Acquisition of 100% of Insurer Joint Venture - Reinsurance leaders see real-time data tools as ‘game-changer’ - Aspen implements e-placing platform Whitespace - Marsh Increases Shareholding in Marsh India from 49% to 92% - Global Shipping Industry Faces Growing Pressure to Cut Greenhouse Gas Emissions - AM Best Upgrades Ratings of Canada’s Co-operators General and Sovereign General - Exor, Again, Agrees to Sell PartnerRe to France’s Covéa for $9 Billion (€7.8 Billion) - Swiss Re Reorganizes Group Operations, Names Ladva Group CTO, as Bronder Exits - Life insurers to see return pressure, manageable losses in 2022: Fitch - Rising Reinsurance Prices and Demand Help to Create Stable Sector Outlook: AM Best - Global: Primary insurers' quest for capital efficiency boosts reinsurance growth - Marsh McLennan Agency acquires InSource - Libya: Insurance regulator vets applications for reinsurance licence - Willis Towers Watson Acquires Sydney-Based Aviation Broker Aerosure - Arthur J. Gallagher Completes Minority Investment in MENA Specialist Broker ACE - UK Broker Aston Lark Acquires Client Book of Choice Benefits - Bahrain: Medical and life insurance business drive growth in insurance market in 1H2021 - Rise in Insurance Demand Likely to Break Premium Records in 2022: Swiss Re - Convex Europe Receives UK Regulatory Approval - Willis Towers Watson Launches Industry Risk Forum for Ports and Terminals - Algeria: Takaful agencies set to open by yearend - Insurtech Startup Kettle Raises $25M to Expand Wildfire Reinsurance Protection - Claims Services Provider McLarens Forms Strategic Alliance With Polish Firm Saltex - Allianz COO Stephanie Smith to depart - Reinsurance pricing expectations high across lines, survey shows - Guy Carpenter and Marsh to Combine South Africa Facultative Reinsurance Businesses - Guyana Weighs Raising Requirements for Insurance Cover for Oil Spills: Official - Apollo’s Syndicate 1971 to Open for Trading in 2022 - Climate models are becoming increasingly critical: Aeolus - Willis Appoints 4 New Directors, Including Former Lloyd’s CEO Beale - China’s Ant Group Reports 39% Rise in Profits on Investment Gains - Finance System Is Getting More Dangerous, Not Safer: Allianz CEO - Update: Zurich Insurance Will No Longer Underwrite New Oil Exploration Projects - Rise in Insurance Demand Likely to Break Premium Records in 2022: Swiss Re - Allianz Becomes First Wholly Foreign-Owned Life Insurer in China - Essent secures $439mn mortgage reinsurance transaction - WhenFresh partners with Ambiental on FloodScore Climate data - People Moves: Allianz Global Corporate & Specialty Appoints 5 to Leadership Team - U.S. Severe Weather Insured Losses Surpassed $20B After Rough October: Aon - Big Europe Reinsurers See Strong 9M Earnings Despite High Natural Disaster Losses - Berkshire Hathaway General Reinsurance Unit Launches Mideast Office in Dubai - Aston Lark Acquires UK-Based Innovation Broking - Reinsurers will find common ground on pricing at renewals: TigerRisk’s Gulbransen - Markel adds three to renewable energy team - Zurich acquires Special Insurance Services in Texas - Ardonagh Group Closes on Acquisition of BGC Partners Insurance Units - Aon Founder Ryan Retired at 71, Then He Built a New $10B Business - AXA Tightens Policy for Insuring, Investing in Oil & Gas Ahead of COP26 Summit - Generali Acquires Italy Insurer Cattolica to Boost Domestic Market Leadership - Guy Carpenter Launches Global Insurtech Center of Excellence - Aon and Cybereason Form Alliance to Help Protect Clients From Cyber Attacks - Bermuda’s Tax Advantage for Re/Insurers to Be Cut With 15% Global Minimum Tax: Fitch - Swiss Re CorSo adds Favorito as exec risk head of North America - Coverys Launches European Casualty MGA, AEC Europe - Re/Insurers Need a Data Strategy to Build Underwriting Transformation Programs - Lockton Launches Silent Cyber Property Solution for Businesses - Munich Re Doubles Q3 Profit Despite Big Storm Losses in Europe, U.S. - Lloyd’s Re/Insurer Apollo Receives $90M Investment From Alchemy Partners - China’s Anti-Graft Watchdog to Inspect Financial Regulators, State Banks, Insurers - Howden Acquires Norwegian Broker Aneco Forsikringsmegling AS - Financial Services Groups Urge G20 Leaders to Set ‘Clear, Credible, Ambitious’ Climate Goals - Chubb to Buy Some of Cigna’s Asia-Pacific Businesses for $5.8 Billion - India Plans to Let Foreign Investors Hold 20% Stake in Life Insurance Corp.’s IPO - Germany’s Getsafe Raises $30M, Led by Swiss Re; Eyes Becoming Full Carrier - Egypt: 3 agencies agree on optional insurance cover for locals working abroad - Broker New Dawn Risk Group Launches Europe Subsidiary in Malta - Hub International Completes Purchase of Canada’s National Home Warranty Group - Singapore Plans to Review Cybersecurity Strategy and Laws - EU reinsurers urge UK regulator to delay Solvency II changes - Climate Reckoning Is Coming for the World’s Government Debt - Gallagher Acquires Grand Cayman’s Briat, UK’s Manchester Underwriting - Boutique Broker McGill and Partners Launches Bermuda Operation - Aston Lark Acquires UK Insurance Broker S. Johnson & Co. - Allianz Transfers Legacy Life Portfolio to Resolution Re, Using Quota Share Reinsurance - Re/Insurance Cyber Rates Could Double Before 2023, as Attacks Skyrocket: S&P - Willis Re Launches Flood Model for MENA Region - UK Financial Services Sector Calls for Eased Visa Requirements to Keep Competitiveness - Australia Insurtech Startup Cover Genius Raises Funds, Boosting Valuation to A$1 Billion - Allianz in Talks to Transfer Block of Life Assets to Free Up Regulatory Capital: Sources - UN Launches Disaster Insurance Program for Developing Countries - Mexican Insurtech Startup Offers Quick Claims Payments for Earthquake Damage - Is Climate Litigation Covered by Insurance? - Social Inflation or Science: What Is Fueling Climate Litigation? - Fortegra Europe Opens Branch in Czech Republic - Vantage launches Construction and Political risk business - UK Insurers Cautiously Willing to Underwrite Fire Safety Risks - Insurtech Foxquilt Raises $8M to Expand Small Business Offering in U.S. and Canada - Speciality Re/Insurer Convex Launches European Subsidiary With A- Rating From S&P - Debt surge in emerging markets may hurt insurance outlook: Swiss Re - Zurich Insurance Weighs Selling Some Australian Non-Core Assets - Reinsurers Face Major Claims Uncertainties, but Reap Benefits of Pricing Tailwinds - Corvus, SiriusPoint announce investment & underwriting capacity partnership - Munich Re backs energy storage systems provider ESS - Climate Change Could Force 200 Million People to Leave Their Homes by 2050 - Work of the scientific community and re/insurers needed to assess climate change: Lloyd’s - Gallagher Re Touts Advanced Integrated Reinsurance Analytics Platform - London Financial Employees Return to Offices Despite Rising Virus Cases - P/C Reinsurers Maintain Underwriting Discipline, Despite Rising Capacity: Guy Carpenter - Britain Looks to Revisit Data Privacy Regulations - WTW, Applied Systems target real-time pricing enhancements - Reinsurance environment “most attractive in a decade”: SCOR’s Launay - Willis Towers Watson’s New CEO Says It Has $5 Billion for Possible Acquisitions - Lloyd’s Reports H1 2021 Profit of £1.4B ($1.9B), with 92.2% Combined Ratio - Global Reinsurers Shoulder ‘Considerable Burden’ of COVID-19 Claims - “Inflation is the enemy of the re/insurance industry,” says Swiss Re CFO Léger - Global Reinsurance Rates, Demand to Continue Rising in 2022: Moody’s - Prudential’s Michael Koller joins MS Amlin as Chief Risk Officer - Rates need to and will harden further: Swiss Re CEO Mumenthaler - Russia’s Renaissance Insurance Plans $1 Billion IPO in Moscow: Reuters
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Tackling Climate Change

Former President of the US, Obama once said “But for the sake of our children and our future, we must do more to combat climate change”.

Climate change is becoming the biggest challenge of our time, spanning continents, countries generations and civilizations. The Earth is constantly heating at an alarming and unprecedented rate and the average temperature continuing to rise.

Two thirds of the global warming has occurred since 1975 at a rate of roughly 0.15 – 0.2 degrees Celsius per decade. Sadly, this change is believed to be permanently modifying the earth’s climate.

The main trigger is the greenhouse effect, which is increasing the amount of heat retained by the atmosphere hence causing the rise in temperature. Normally, the greenhouse gases present in the atmosphere block heat from being released, otherwise the temperature would have been around 33 degrees Celsius colder on average. Since the Industrial Revolution began and especially over the past 50 years, the Human activities, such as

deforestation and burning fossil fuels at a great rate, have contributed to an increased concentration of atmospheric CO2 along with other gases making the greenhouse effect worse.

The following table lists the 2015 annual CO2 emissions estimates (in thousands of CO2 Tons)


Source: Various sources & Arab Re research


The data only considers carbon dioxide emissions from the burning of fossil fuels and cement manufactures, but not emissions from land use and forestry.

With this constant increase in CO2 emissions and average temperature, it should be expected to see record losses of ice melting in the Arctic Sea, increasing thus the sea level and exposing big cities like New York, Sydney and Mumbai to the risk of drowning. Over the last one hundred years, the ocean has seen a rise of 10 cm to 20 cm. This will influence too, the precipitation patterns with more storms and floods hitting the coastal zones. Oceans and Coral reefs are at risk as well. The latter are starving of oxygen causing eventually the death of the coral while oceans are becoming more acidic.

With the growing threat posed by climate change,

an unprecedented unification of governments all around the world to combat this risk was embodied though the famous 2015 Paris Agreement.

This was is a turning point in the road to low Carbon economy. The accord was negotiated by 196 representatives at the 21st Conference of the UNFCCC in Paris. As of July 2017, 195 UNFCCC members have signed the agreement, out of which 154 have ratified it. Those ratified countries have one aim that is to keep warming well below two degrees Celsius with a target to reach 1.5 degrees Celsius.

Awkwardly and despite the US ranking as second highest emitter of CO2 worldwide, the US government decided recently to withdraw from the agreement causing widespread condemnation. Yet this has given China, ranked first, an opportunity to take the lead. To note that the EU remains one of the world’s carbon polluting regions and comes second just after China and US.

In line with their commitment towards the agreement, the Chinese government along with many European countries have adopted recently national programs aiming at reducing the greenhouse gas emissions i.e. building renewable capacity and nuclear reactors as well as limiting the use of coal in addition to giving incentives to buy electric and hybrid cars.

The target is that by 2020 there should be a 20% reduction of greenhouse gas emissions compared to 1990, and by 2030 a 40% percent reduction.

The common consensus is that there is definitely a relationship between the global warming and severe weather events.

The climate change has the potential to affect the frequency and severity of extreme weather,

which results in hotter heat waves and worse droughts as seen in the example below:

 

Source: Various Sources & Arab Re Research

With total losses increasing fivefold since 1980’s and reaching $170 billion today, the climate change has definitely become an emerging risk particularly for the insurance industry. It has indeed a profound impact on insured losses which could top at 1 trillion $ in a bad year.

The most disastrous year for the industry was in 2005 after Hurricanes Katrina and Rita struck America. Hurricane Katrina alone resulted in combined insured losses of around 41 billion $ and is considered to date as the worst insured loss event in the history of insurance anywhere in the world even bigger than 9/11.

The amassed number in extreme weather events has led the insurance sector to adopt a list of mitigation and preventive measures such as:

• Closer coordination with the construction sector by ensuring that rebuilding of properties are done in a sustainable way using better materials;
• Avoiding investments in companies that are major CO2 emitters
• Wider adoption of CAT modeling which is now being measured on a per risk basis for catastrophe exposure;and
• Tightening of policy wording with the use of named storm perils while excluding damages resulting from storm surge.

Additionally, the increased losses are making some of the previously insurable assets to become uninsurable.

The average annual gap have seen a rise from 23 billion $ in the 1980s, to 100 billion $ today. In response to this growing protection gap, 29 of the leading insurance industry organizations including Allianz, Aon, Aviva, Lloyd’s, Prudential, Swiss Re and Zurich launched in 2008 the Climate Wise, a global network with the main target of supporting the insurance industry to better communicate, disclose and respond to the risks associated with the risk of protection gap.

Likewise, the African Union is playing its part to reduce the weather-related disasters and in 2012, they have established the African Risk Capacity Agency (ARC Agency) and its affiliate the African Risk Capacity Insurance Company Limited. This body consists of 32 African nations, which aim at helping the members to improve their capacities to better plan, prepare and response to the threats of climate change. The main objective is to assist them in reducing the losses caused by extreme weather events.

As for the MENA region, it is considered as the world’s driest zone with less than 2% of the world’s water supply.

Recently it has been experiencing a tremendous amount of environmental hazards due to climate change effects i.e. the 2013 floods in Sudan, which caused the destruction of around 25,000 houses, the rainfall drop in Tunisia in 2016 causing agricultural losses of around two billions dinars and the extreme summer temperatures in Kuwait reaching 54 degrees Celsius and many others. 

Countries in the region are well aware of these threats and this has pushed Algeria, Jordan, Malta, Morocco, Palestine, Saudi Arabia, Tunisia and UAE to ratify the Paris Agreement in 2016.

Additionally, all countries have submitted a plan on how they will adapt to the new climate conditions and how they will contribute to achieve their target of reducing the greenhouse gas emissions. For instance,

Morocco, planned to install five solar power plants by 2020 which are sufficient to cover 18 per cent of annual electricity production and save 3.7 billion tons of CO2 emission per year.

Also Saudi Arabia has taken steps to adapt is agriculture, with better water management and more climate resistant crops, while working on lowering the gas emissions. Tunisia, from its side, has made a great progress by embedding in 2014 the climate protection into its constitution and by announcing a 41% emission reduction by 2030.

Most importantly, the World Bank group has come up recently with a new plan that will boost the financing dedicated to climate change by doubling it to 2.5 billion $ per year by 2020 as part of its role of supporting the region in its energy transition phase.

With regard to the insurance sector, more efforts have to be put forward and serious implementations and strategies need to be implemented. This was raised during the latest 14th Carthage Rendez-vous, organized by the Tunisian Federation of Insurance Companies and Tunis Re with the collaboration of GAIF. During the congress,

insurance leaders of the region urged the industry to set up valid system to cover the impacts of climate change

and to build their financial and technical capacities while finding well suitable solutions for the region.

However, the insurance industry is incapable by itself to face the threats and cover the increasing cost of weather related losses. That is why a call for establishing a mechanism involving the private sector through sustainable Public Private Partnerships (PPP) schemes is crucial. The latter is a form of cooperative arrangement between the public and private sector aiming at developing innovative long term relationships between both sectors.

As for the situation in Lebanon specifically, it does not differ from the rest of the region, suffering from the impacts of climate change. According to Inter-governmental Panel on Climate Change (IPCC),

with the current level of Greenhouse Gas (GHG) emission, the temperatures in Lebanon are expected to increase by 1 degree Celsius to 5 degrees Celsius by the end of the 21st Century.

Some international bodies in collaboration with the private and public sector have already started taking timid steps to reduce the costs that climate change will impose on Lebanon.  Such preventive measures include the erection of several large check dams to minimize the effects of floods and the increase of the lending capacity for eco-minded business corporations to invest in renewable energy.

Needless to say, that the Lebanese government should be more committed and involved in the global fight of climate change noting that these anticipated changes in weather will definitely impose direct impacts such as higher temperatures, changes in precipitation and reduction in agricultural productivity. The indirect impacts are expected to hit the economy with a slower growth and lower GDP thus affecting the incomes for workers and exposing the government to lower revenues.

It is obvious that climate change is a real and serious issue and the negative impacts combined with the increased extreme weather events are significant. How ready are we to cope with the impacts of climate change? Are we addressing it fast enough?

People need to know that we do not have the luxury of time and we need to get on truly with climate change adaptation. It is undeniable that climate change along with the concentration of economic values in large cities are posing an unprecedented change in the insured loss trends in the property (re)industry. Global insurers will continue to be intensively involved in studying climate change and adopting climate-friendly initiatives. At a MENA level, non-insurance associations such as banks, universities and industrial groups started tackling climate issues. Therefore, Arab insurers are invited to adopt the commitment made by global (re)insurers even though the MENA zone is relatively less prone to natural catastrophes compared to other parts of the globe.



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