The next global ‘black swan event’ may be uninsurable

The insurance industry is heading for an existential crisis. A pandemic is not a risk it can cover. But if the industry doesn’t use its expertise to find innovative and creative solutions, it risks becoming irrelevant.

The next global 'black swan event' may be uninsurable

There aren’t many contexts where $2-trillion (R30-trillion) seems like a paltry sum. Then a pandemic comes along. The economic fallout from Covid-19 has left insurers issuing existential warnings and businesses discovering they weren’t covered. It’s resulted in courts packed with lawsuits and governments scrambling to head off more pain.