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Montenegro

Insurance and Business

Insurance vulnerabilities Montenegro

Household insurance

Albania, Bosnia and Herzegovina, Croatia, Montenegro, Serbia and Bulgaria are committed to the South Eastern and Central Europe Catastrophe Risk Insurance Facility (SECE CRIF) – a regional catastrophe insurance programme facilitated by the World Bank together with the United Nations International Strategy for Disaster Reduction (UN ISDR) and the Regional Cooperation Council (RCC) (8).

The SECE CRIF will be set up as a regional catastrophe risk pool owned by the governments of the participating countries and managed by the private sector. The aim of the SECE CRIF is to “facilitate the development of a catastrophe insurance market in South East Europe and thereby provide access for homeowners and SMEs to affordably priced (but not subsidised!) catastrophe insurance” (9). This would help reduce the budgetary outlays of governments for reconstruction after disasters (10).

Insured losses - Globally

Globally, insured and total property losses are rising faster than premiums, population, or economic growth; inflation adjusted economic losses from catastrophic events rose by 8-fold between the 1960s and 1990s and insured losses by 17-fold. Large catastrophic events cause less damage in an average year than the aggregated impacts of relatively small events (a 40/60 ratio globally) (7).


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Vulnerabilities - Overview

The insurability of natural disasters and extreme weather events may be affected by increases in the frequency, severity, or unpredictability of these events. ... Climate change presents various challenges to insurability. These include technical and market-based risks (7):


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Vulnerabilities - Europe

It is estimated that losses from weather events are doubling globally every 12 years. Even though the observed increase in losses is dominated by socio-economic factors (such as population growth, increased number of habitations in vulnerable areas, increased wealth, increased amount and value of vulnerable infrastructure), there is evidence that changing patterns of natural disasters are also drivers (1). It is however not known how much of this increase in losses can be attributed to anthropogenic climate change (2). After accounting for changes in population and wealth, it has been shown that changes in extreme weather events may be responsible for a growth in losses by about 2% a year since the 1970s (6).


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References

The references below are cited in full in a separate map 'References'. Please click here if you are looking for the full references for Montenegro.

  1. UNEP FI (2006), in: EEA, JRC and WHO (2008)
  2. Höppe et al.(2006), in: EEA, JRC and WHO (2008)
  3. EEA, JRC and WHO (2008)
  4. Pielke Jr and Downton (2000); Mills (2005); Barredo (2007), in: EEA, JRC and WHO (2008)
  5. Marttila et al. (2005)
  6. Muir-Wood et al. (2006), in: Ward et al. (2008)
  7. Mills et al. (2005)
  8. Radev (2009), in: UNDP (2009)
  9. Regional Cooperation Council (2009), in: UNDP (2009)
  10. Gurenko et al. (2008), in: UNDP (2009)

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