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.
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.