did you credit against? it's also our costs. sorry. thanks for your time. you're much fight with the german vice chancellor speaking to nick connelly and keep your up to date here on date, obligate more. one thing i'll be done. what cod tires have to do with the production? here's a hands on the real media. watch now on youtube, the hurricane. otis 20. 23 mexico flash floods. band 2021. germany hurricane. katrina. 2005 usa

more frequent and way more intense natural disasters or catastrophes like hurricanes, floods, heat, waves and droughts are happening more often becoming more dangerous and they're growing in cost. in this episode of transforming business, we dig deeper into the insurance industry. we ask, is it keeping up with the increasing destruction being caused by extreme, whether the devastating that's how people describe hurricane otis in mexico and especially so for the province of get at what the city of acapulco sits, guys, the front of them is when it starts to get stronger and stronger so much that you could hear it from the room. i didn't want to go out because it was very strong. i could only hear things falling sticks and everything. i could only hear it sallow

folders to you. another muscle ro, seo is a homeowner here. the morning after the hurricane in october 2023, she was unable to enter a different parts of her house. she did not have homeowner's insurance. instead she had to rely on savings and help from the government to rebuild, which she had lost. uh, but uh for that uh, it's very expensive to be able to be insured against exhaust, as of things like that. we don't have enough to be insured or to have something secured if any disaster comes walls, i would've thought i'd go for check was i've got this. kevin ro, seo is one of the majority of people living in acapulco who choose not to have insurance, got cancelled. sort of the main thing is only around 6 percent, 6 of a 100 houses that have insurance with them. this is one of the big challenges when it comes to insurance in mexico. and unfortunately, payable is no exception. go eat and don't even think if i don't like it you. we'll

get back to why people are not insured later in this video. but it's not just homeowners. acapulco is a tourist destination. a year before the hurricane hit the region real to the almost $9000000.00 tourist feeling around half of the hotels during peak season. parking owed is damaged 80 percent of the hotels. here's how david zuniga, the owner of photo to request that remembers it. any good. there we go. there may have you on the line. what can i say? tears were running down my face when i saw my company and all my savings. what worried me was weird to get money to recover and be able to start and by televisions and supplies that we're talking about $500000.00 piece or the consumer . the way i don't know if they're going to get into any type of david's midsize hotel is currently being rebuilt. this property was not insured, but he managed to get some coverage through his bank. cost was a big factor, why he decided against insurance. but why can it be so expensive?

and the global insurance industry is worth the 6 trillions west dollars more than japan's g d p. and is one of the biggest industrial in the world. what it essentially does is take risks on your behalf. you band insurance company monthly premium that is calculated based on the potential risk of a disaster, like a fire or flood. the higher the risk, the higher the premiums. and in such cases they cover the damage you incurred. obviously it's not as simple as that, and we'll talk about the problems of the industry later in the video. so how is the risk analyzed? well, we can do it ourselves to some extent. if you're a young family looking to invest, if you choose a property in a city, your insurance against natural disasters would maybe be a 100 years a year. but if you find a house closer to the cost or the seat, then your insurance would be higher. maybe 500 yours. this is because the coastal

area is more prone to flooding m i living in the flood prone area today and was climate change advancing over the next years indicates you should think about the property home. then you, you'll need to have a long term fuel. how is my property exposed to flooding intent to? so the 4 to 50 is time from now. strauss chief climate scientists said munich re the largest re insurance company in the world, explained it like this. having this knowledge to transparency about the situation and the about the options, i have to react properly to improve my receives for a long time insurers and scientists looked at historical data. they checked activity in different parts of the country, for example, and attached a risk level based on how vulnerable it was in the past. the focus that those days was hurricanes and earthquake. nobel prize on a v, karen clark pioneer,

the risk assessment model in the eighty's. but she questions whether it's an adequate way of looking at it today. of the challenges today or not just for teams in or ways it's severe convective storms, floods, wildfires, winter storms. so there are many other perils and the problem is the methodology used by the 1st generation of models to assess hurricanes in earthquakes is not well suited to what we call the frequency pair. insurers and risk modelers learn from it went all over the world a major hurricane in the us or when storms in europe, health modeling systems analyze the laws and use the learnings to calculate the cost of future disasters. so risk modeling systems also help set the price of premiums have a catalogue of hundreds of thousands of potential. use your events of all types of

events. you know, so the or collective swarms hurricanes, earthquakes just bring them in, even though they're not weather related. and then our clients use that catalog to price the risk, but there are holes and data that the systems use and that can be a problem. and we've come a long way in some regions and improving the quality of that data. but in some areas, we still have challenges in terms of having very good information that would be used by the models to assess the risk. places that will once deemed safe to build are no longer a secure welcome to our valley, invest in germany, a region filled with vineyards and tourism. a region that was ravaged in 2021 by flash floods caused by the low pressure weather system bend. over 150 people lost their lives. many saw their homes destroyed infrastructure. they used every day,

like bridges during the way. and because i'm in total, according to the expert opinion, we have just under a $190000.00 euros and damage to the how of this. it was flooded up to 10 centimeters below the ceiling of the 1st floor. so that everything on the 1st floor and in the basement was affected by the water contaminated by the mud and was no longer usable from from slumber confirming the florida. and i initially got sick of the house in by i todd was not designated as a high risk area, and so her route didn't get the natural has, has insurance. and the, if you would probably be considering the flood as expecting a horrendous premium. and i'm now paying just under 900 year olds a year for the whole house insurance, including natural habits covered so inclusive. let me pause. climate change cost mainly by humans burning fossil fuels is having a big impact. according to the world, whether attribution study which investigates the impact of global warming on the, whether the heavy rain that led to the floods an otter or more likely to happen and

be heavier due to climate change. in germany, having insurance is a key part of life in a big chunk of monthly wages. despite this only 52 percent of the country's homes are covered by natural hazards. insurance which covers damages caused by floods green earthquakes and more. that's where you hit so it was in terms of when we moved here, or rather when we bought a house, i bought about water damage and asked around in the neighborhood what the situation was like. what happened here in the past could be, is look, and everyone always said like, no, no one can ever remember anything like that. yes. but i've come to the conclusion that i made a mistake by not buying natural hazards insurance. that's the focus here to kind of an attachment for this program. so she's increasing risk as a result of climate change is driving up insurance premiums. but let's go back to mexico. there are many reasons why people don't buy insurance. affordability is the

main one. this leads to a protection gap in which many people are uninsured, and hence are unable to get to be out for their loss. when they get asked if he hits the face in norma's financial pass show. when rebuilding this gap is also highlighted and the difference between total damage or for disaster and the insured losses even in years when the damaged from catastrophes was huge. the insured losses were only a fraction. remember roseville, the mexican government helped with some money and her family chipped into, but she and others like or would have benefited from insurance. companies say education is key. i was going through this program and i did. we work with different programs to reach the youngest population, including educational campaigns for elementary and high schools. but. and we also have a whole campaign of identification and raising awareness to the risks to which were exposed in the adult population vehicles of almost it was an important issue. and

then there are places labeled uninsurable. it's a very complicated situation, obviously. um and nobody likes the fact that the risk is going up, but there is a cost to that. and so it's just a question of how we're going to pay for it. you can initiative called flood free is trying to bridge this problem that provides the insurance to insure us that cover homes against that to risk, to make sure that these ensures can continue to offer that insurance to him earnest at an affordable premium level. this is francisco on a wire, she's a lawyer. i'm an academic in the insurance industry, living in the u. k. which box is that when you're buying a home insurance. so that's covered as automatically bundled in into that insurance policy about a few books of which ensure us that's whether you're home and that is exposed to announcements or not be or buying it. in other words,

every ensure that offers the typical homeowners insurance in the u. k. p is in to the floods the pool. each year the pool accumulates money, which has been used to cover flood related damages for the insurance. instead of the insurance companies being for the damage the floods, the pool is used and whether you're at risk or not, you're protected and other initiative in fiji, which is high risk for psych loan springs communities. the state insurance together since the uh the u. m. sponsored an insurance program there uh, which actually makes anticipates re pay us. so very insurance doesn't tobate's for the last to happen. but a pay off this tree goods. uh, venice type soon as imminent. and then the people in the effect to communities. they get the vouchers for specific lucas dos, which they can redeem against the food supplies. and also, you know, it's a hospice stuff to secure their public. experts say initiatives like these can help

and high risk areas all over the world with close coordination between the insurance and the street. scientists risk model as in finance, he has like the government can help protect the vulnerable but let's come back to the original question. if the insurance industry keeping up with the destruction caused by extreme weather, well, it is an industry where it's trillions of dollars, where companies gamble with risks. and it's worth mentioning that the same industry is also contributing to the problem by investing billions in fossil fuels. as the global population becomes increasingly vulnerable to climate events, the cost of insurance is also rising. ultimately, it's up to the industry to change itself to put in place systems that allow affordable insurance ads to back the green transition that will slow the probability of such catastrophes the

into the conflict zone. with tim sebastian. as the war and ukraine grind on the neighboring voltage states watch anxiously from the ringside seats, pressing the west to increase a secure, and make sure russia dozens with my guest this week is the last to be as 5 minutes to place you on this current. and he's clear nature as the optics can conflict then next on d, w to the point. strong opinions, clear positions, international perspective of the growing frustration with the us as russia rams off aerial assaults. can ukraine hold its eastern front as it struggles under rock at a time? and how can it air defenses be strengthened?

join us this week on to the point to the point in 6 to minutes on d. w. as the board and ukraine grinds on, the neighboring voltage states what's anxiously from the ring side seat, pressing the west to increase a to kia and make sure russia doesn't. with my guess this week is the last to be as 5 minutes to fish on these kinds. and he's clear nato as the up it's gain. the difficulty in the frustration that i feel is that as we are going step by step, russia is going full frontal flows. so how ready is nato to take on an expansion is russia. why are some rich european states phil? i'm willing to meet the alliances defense spending targets and was present the macro really calling his allies co.