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International News

Australian general insurers welcome `Bushfire Funding’, say Tax Rise ‘Unsustainable

The federal government’s allocation of A$1.2 billion (US$931 million) over five years to improve Australia’s capability to prepare for, respond to, and recover from natural disasters and now the Victorian government’s A$517 million investment in bushfire specific resilience initiatives will protect communities vulnerable to the impact of extreme weather and natural disasters,the ICA said in a statement.

“This welcome news is tempered, however, by the Victorian budget’s projections that revenue from insurance stamp duty will increase by almost one-third over the budget estimates, rising 29% from A$1.517 billion in 2020-21 to A$1.959 billion [US$1.519 billion] in 2024-25,” the ICA explained.

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Biden doubles U.S. spending on preparations for extreme weather

The $1 billion will help communities prepare for hurricanes, floods and wildfires, with a portion allotted specifically to disadvantaged communities, the White House said.

It said the United States had 22 separate weather- and climate-related disasters in 2020 costing a total of nearly $100 billion in losses.

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Africa Specialty Risks unveils Parametric Underwriting Division

Mikir Shah, CEO of ASR, commented: “The establishment of the parametric division demonstrates our commitment to de-risking investment and increasing resilience across the African continent. Our vision is to unlock greater and more streamlined protections for insureds, ensuring that inward investment in Africa continues to boost economic activity and growth on the continent, via the integration of innovative, technological solutions. 

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As China grows old, elder care costs loom large

According to the National Bureau of Statistics (NBS), in about 25 years, one-third of China’s population will be retirees, and their living and health care expenses will take up one-fourth of the country’s Gross domestic product (GDP). Moreover, China’s increasing elderly population will reduce the supply of labor force and increase the burden on families’ elder care and the pressure on the supply of basic public services.

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