Haiyan Update: Is Microinsurance the Key?

In the week following Typhoon Haiyan's blitzkrieg attack of the Philippines, a major story is the lack of insurance in affected areas.

Here are some of the topics on the insurance industry's mind as the world reacts to the devastating Typhoon Haiyan, which swept through the Philippines earlier this week, causing thousands of deaths and a financial loss to the country in the range of $12 billion to $15 billion, or 5% of the company's output. However, only about $100 million of that loss was insured, according to EQECAT. That's led to some conversation in the insurance industry about the right way to handle this kind of situation in the future. Here are some links to check out:

The Guardian suggests that microinsurance could be a path toward increasing coverage for smaller, poorer, but at-risk populations.

Munich Re says that other than Japan, East Asian countries are underinsured relative to their risk of catastrophic events.

Finally, Reuters finance blogger Felix Salmon says that a cat bond wouldn't have done too much to help the Philippine situation.

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio