HDInsights Edition 7 2022

Climate Change – Changing Environments

Current challenge: rising inflation “Property underwriters need to monitor the current inflation rate quite closely given that the premium is generated off of declared asset values or replacement costs. As the cost of construction materials and labour is significantly higher today, it is important that these increases are reflected in the values that clients are declaring. This is something to be mindful of during the renewal process with your clients.”

The CSIRO released their Mega Trends Report earlier this year, projecting extreme weather events will cost Australia $39 billion annually by the year 2050 with increased loss payments. As a consequence, premiums will rise. However, considerate risk management can help to limit exposure and therefore premium increases. Andrew Hall, CEO of the Insurance Council Australia, has highlighted it may be prudent for example to raise buildings on stumps in low lying areas, reinforce roofs in cyclone affected areas, and potentially relocate individuals and businesses in the event of a total loss in areas where they can't be adequately protected.

Stephanie MacIntyre, Property Underwriter HDI Global SE, Australia

Please contact our HDI Team with questions Watch here: Lunch & Learn: Risk Engineering & Resilience

Insurers also need to prepare for evolving risks from climate change . “I think we really have to accept and prepare for more extreme and more frequent weather events,” Mr Glanz said. “Climate change also means we will have a change in ambient conditions which will affect the operational capabilities of technical systems. This needs to flow back into the design and operation strategy, but also maintenance and inspection programs.” HDI has approximately 180 risk engineers globally and within this is a team that focuses on climate change and develops specific reports and loss prevention strategies to support brokers and clients into the future.

Download Presentation Slides here: Lunch & Learn: Risk Engineering & Resilience

Contact - HDI

Peter Ratering Assistant Property Underwriter HDI Global SE, Australia

Philipp Glanz Risk Engineering Manager Asia-Pacific M: +61 (0)498 016 552 Philipp.Glanz@HDI.Global

Stephanie MacIntyre Property Underwriter M: +61 (0)417 671 391 Stephanie.MacIntyre@HDI.Global

Anna Khomeini Market Manager M: +61 (0)450 080 244 Anna.Khomeini@HDI.Global

Peter Ratering Assistant Property Underwriter M: +61 (0)434 865 980 Peter.Ratering@HDI.Global

HDInsight Edition 7 - page 16