this is disturbing the crowd, lynn has so far denied any knowledge of the suspect. but the foreign ministry in berlin has summoned the russian and busted uh to explain himself. you're up to date here on dw this more now website d, w dot com. jared, great, thank you for watching. my name is the calls back. said loud. thank you so much for joining in. welcome to don't hold a bad. a lot of people do that. it's all about saying it aloud. next, would it be nosy bay? like good, everyone to kings. check out the award winning called com. no, hold back. the hurricane. otis 2023. 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 trouts 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 weather? the devastating, that's how people describe hurricane otis in mexico and especially so for the province of get a what the city of acapulco sits, guys the bundle from when that started 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 folding sticks and everything. i could only hear it all

the folders so you know that muscle ro, seo is a home owner 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 are there there's glass of giving them low. c, o is one of the majority of people living in acapulco who choose not to have insurance things gas, the flu. sort of the main thing is only around 6 percent. 6 of a 100 houses have insurance with them. this is one of the big challenges when it comes to insurance in mexico. and unfortunately, the cable is no exception. go eat nothing. 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 to 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 in the globe? the insurance industry is worth a 6 trillions west dollars more than japan's g d p. and is one of the biggest industries 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 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 coast or the sea,

then your insurance would be higher. maybe 500 years. this is because the coastal areas is more prone to flooding m i living in the flood prone area today and was climate change advancing over the next years indicates the if you think about the property a home and then you, you'll need to have a long term fuel, how is my property exposed to flooding intent to so the 4050 is time from now. as trial chief climate scientists at munich read the largest re insurance company in the world, explained it like this. having this knowledge, dis, transparency about the situation and about the options i have to react properly to improve my resilience. 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 perkins an 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 are 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 uter events of all types of

events. you know, so the or convective 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 to the and i conditions but sort of often by no i, todd was not designated as a high risk area and so horizon 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 with them and partials, climate change costs mainly by humans burning fossil fuels is having a big impact. according to world weather attribution study,

which investigates the impact of global warming on the weather. 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 the house, i thought about water damage and asked around in the neighborhood what the situation was like. what happened here in the past could be, as 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 quite fluffy, setup kind of an attachment for this product. so sure these 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 hands are unable to get beat out for their loss when they get asked if he hits, they face enormous financial pressure. so 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 to remember, rosie all the mexican government helped with some money and her family chipped into, but she and others like or would have benefited from the insurance company say education is key, comes from the business program. and i do, 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 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's risk to make sure that these insurance can continue to offer that insurance to homeowners 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 as part of the basics of which insurance that's of whether you're home and

that is exposed to fluctuates or not be or buying this. in other words, every ensure that offers the typical homeowners insurance in the u. k. p is in to the flood people 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 loans brings communities the state insurance together and see uh the u. m. sponsored an insurance program there uh which actually makes anticipates re pay us. so very insurance doesn't bates 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 vouchers for specific lucas dos which they can redeem against the food

supplies. and also, you know, as of top this stuff to secure their properties. 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 a 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 defense, 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

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