The London Market Group (LMG) has underlined the importance of risk transfer in building a more resilient world against the threats of disaster situations, in a statement that welcomes the establishment of a new London Centre for Global Disaster Protection.
UK Prime Minister, Theresa May, announced the creation of a new London Centre for Global Disaster Protection at the G20 meetings in Hamburg, Germany. The London Centre is designed to harness expertise in the insurance and reinsurance industry with the vision of helping to expand the use of rapid paying risk transfer protection and insurance against the world’s perils.
Following the announcement from the UK Prime Minister, the Chairman of the London Market Group (LMG), Nicolas Aubert, commented; “The LMG welcomes the creation of the London Centre, it is another example of how London is becoming the global leader in supporting developing countries by giving them the technical advice and know-how to help them to grow their own domestic markets and encourage internal investment.”
Continuing to explain how important and influential insurance protection is when considering the building of improved, sustainable disaster risk management and global resilience, especially in poorer, more vulnerable parts of the world, Aubert, said; “Insurance can deliver significant capital quickly and importantly, the expertise alongside it to strengthen disaster planning, rebuild and increase resilience for the future.
“In disaster situations, countries often have to rely on humanitarian aid which takes time and often cannot cover all of the long-term costs. Research shows that the overall cost of the catastrophe can be three to four times higher if funds have to be raised once the disaster has occurred than if they are made available immediately.”
