Title: Daniela GHETU, Editorial Director, XPRIMM Publications
1Daniela GHETU, Editorial Director, XPRIMM
Publications
- Property insurance in the Caucasus area - 2014
2With global warming of close to 1.5C above
pre-industrial times already locked in, and a 40
chance to exceed 4C before 2100 if no further
action is taken, weather extremes considered as
occurring every 100 years at most may soon become
the NEW NORMAL. Turn Down the Heat
Confronting the New Climate Normal, The World
Bank
3Commonwealth of Independent StatesCountry
features
Caucasus 17.15 million people 3.8 million
households arable land 15.4 of total area
Central Asia 67.82 million people over 7
million households arable land 8 of total area
Area Population Urban population Households Dwellings Arable land Share of agriculture in GDP
sq km millions of total millions millions of total land use
Armenia 29,743 3.29 62.80 0.78 0.86 15.75 21.90
Azerbaijan 86,600 9.38 54.40 1.99 1.86 22.95 5.70
Belarus 207,600 9.47 76.30 3.86 3.89 27.21 7.30
Georgia 69,700 4.47 53.50 1.03 na 5.76 9.10
Kazakhstan 2,724,900 17.42 53.30 4.15 na 8.48 4.90
Kyrgyzstan 199,951 5.70 35.60 1.11 na 6.66 19.30
Moldova 33,851 3.56 44.90 1.13 1.08 55.20 15.70
Russia 17,098,242 143.70 73.90 52.71 58.00 7.31 4.00
Tajikistan 143,100 8.30 26.70 1.20 na 6.14 27.20
Turkmenistan 488,100 5.80 49.70 na na 4.13 13.20
Ukraine 603,550 42.78 69.50 16.98 19.40 56.13 12.10
Uzbekistan 447,400 30.60 36.30 na 5.63 10.23 18.50
Sources National Statistics Officies, CIA World Factbook 2015 Sources National Statistics Officies, CIA World Factbook 2015 Sources National Statistics Officies, CIA World Factbook 2015 Sources National Statistics Officies, CIA World Factbook 2015 Sources National Statistics Officies, CIA World Factbook 2015
4CENTRAL ASIA AND CAUCASUSCurrent risk profile
Earthquake Floods Drought Landslide
Azerbaijan X XX X X
Armenia XXX XX X
Georgia XX XX X X
Kazakhstan XXX XXX X
Kyrgyzstan XXX XX XX
Tajikistan XXX XXX X XXX
Turkmenistan XXX XX
Uzbekistan XXX X X X
Earthquakes are the dominant disaster risk
followed by floods, landslides and droughts
Higher temperatures ? melting glaciers ?
increased flooding risk in the coming years ?
water reserves shortage after a few decades ?
prolonged drought
5CENTRAL ASIA AND CAUCASUSReasons of concern
Earthquakes are the dominant disaster - major
cities in Central Asia and Southern Caucasus are
especially at risk.
The energy corridors, as the Baku-Tbilisi-Ceyhan
(BTC) Crude Oil Pipeline and the
Baku-Tbilisi-Erzurum (BTE) Natural Gas Pipeline
crossing territories with high earthquake
exposure There is a 40 chance of a powerful
earthquake striking close to a major city in the
region by 2016. (The World Bank)
Floods significant risk across the region
large population concentrations along the river
valleys for agricultural reasons -gt significant
number of people at risk agricultural
losses Drought significant risk across the
region agricultural losses (significant share
in the GDP)
6CENTRAL ASIA AND CAUCASUSEconomic Loss Potential
Disaster Risk Mitigation and Adaptation
Programme, The World Bank
7How large is the coverage GAP?
- Participation of the insurance industry
worldwide to the Nat Cat losses is still too
small - less than 30 of losses are insured (Swiss Re)
10 years' average economic losses
10 years' average insured losses
8Azerbaijan
Share of agriculture in GDP 5.7 Share of
agriculture in labor force 38.3 Number of
dwellings 1,861,000
PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS
Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m)
Total Fire other perils (V) Immovable property (C) Agricultural ins. (V) Total Fire other perils (V) Immovable property (C) Agricultural ins. (V)
FY2013 312.52 44.26 12.32 0.93 110.31 2.94 1.34 0.52
FY2014 340.46 38.23 18.30 2.60 135.01 8.02 2.54 0.51
14/13 8.94 -13.62 48.63 179.00 22.39 173.14 89.10 -2.43
9Armenia
Share of agriculture in GDP 21.9 Share of
agriculture in labor force 44.2 Number of
dwellings 862,025
PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS
Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m)
Total Fire other perils (V) Damages to property (V) Total Fire other perils (V) Damages to property (V)
FY2013 61.68 3.82 0.43 32.03 0.36 0.01
FY2014 52.05 3.54 0.50 38.13 8.36 0.01
14/13 -15.61 -7.12 16.47 19.04 2241.41 64.52
10Georgia
Share of agriculture in GDP 9.1 Share of
agriculture in labor force 55.6 Number of
households 1,025,829
PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS
Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m)
Total Property insurance (V) Total Property insurance (V)
FY2013 191.90 17.22 161.05 1.11
FY2014 126.23 28.57 95.18 1.92
14/13 -34.22 65.92 -40.90 74.01
11Kazakhstan
Share of agriculture in GDP 4.9 Share of
agriculture in labor force 25.89 Number of
households 4,152,740
PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS
Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m)
Total Fire other perils (V) Agricultural ins. (V) Total Fire other perils (V) Agricultural ins. (V)
FY2013 1,054.40 217.18 2.27 246.88 44.33 1.46
FY2014 987.22 233.86 2.17 276.28 30.61 4.80
14/13 -6.37 7.68 -4.25 11.91 -30.94 228.56
12Belarus
Share of agriculture in GDP 7.3 Share of
agriculture in labor force 9.4 Number of
dwellings 3,893,638
PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS
Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m)
Total Prop. of legal entities (v) Prop. of individuals (v) Prop. of individuals (v) Home insurance (c) State subsidized agro ins. (c) Total Total Prop. of legal entities (v) Prop. of legal entities (v) Prop. of individuals (v) Prop. of individuals (v) Home insurance (c) State subsidized agro ins. (c)
FY2013 466.02 73.00 69.23 69.23 5.73 20.50 205.25 205.25 31.55 31.55 33.91 33.91 2.25 11.96
FY2014 475.10 62.82 62.92 62.92 5.78 14.94 217.74 217.74 33.81 33.81 33.62 33.62 2.45 6.78
14/13 1.95 -13.94 -9.11 -9.11 0.87 -27.11 6.09 6.09 7.17 7.17 -0.86 -0.86 9.17 -43.33
13Russia
Share of agriculture in GDP 4 Share of
agriculture in labor force 9.7 Number of
dwellings 58,000,000
PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS PROPERTY INSURANCE STATISTICS
Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life GWP (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m) Non-life claims (in EUR m)
Total Real estate - legal entities (V) Real estate - individuals (V) Agricultural insurance (V) Total Real estate - legal entities (V) Real estate - individuals (V) Agricultural insurance (V)
FY2013 18,233.82 2,319.00 663.71 317.70 9,082.43 554.25 127.56 128.17
FY2014 12,865.19 1,641.34 564.99 244.37 6,702.11 464.24 92.49 79.36
14/13 -29.44 -29.22 -14.87 -23.08 -26.21 -16.24 -27.50 -38.08
14Regional summary risks enhancing factors
- 2/3 of the regions population is concentrated in
the southern area, highly prone to all kinds of
hazards, exacerbated by the diverse geography and
extreme weather conditions - coupled with climate
change. - Many capital cities nad large cities located in
high to very high hazard areas. - The energy corridors are crossing territories
with high earthquake exposure. - Droughts the second major risk in Caucasus
27 of Armenia and 17 of Azerbaijan fall under
the high drought hazard category (the 2000
drought in Central and south-west Asia and the
Caucasus region affected about 60 million people)
15Regional summary risks enhancing factors
- Low financial literacy of people unadequate
perception of risks - Insufficient insurance protection of dwellings,
although mandatory in some countries - Nat Cat insurance penetration even lower
- Low penetration of the property insurance lines,
especially agricultural insurance - With few exceptions, poor Nat Cat risks transfer
mechanisms inadequate protection of households
and small enterprises
16Housing protection improvement needed
- insurance protection
- risk mitigation measures
17Agricultural insurance development needed across
the entire region