COP18 (04/12/12) – Thomas Loster, Director at Munich RE talks about the issue of climate insurance. He warns that a large percentage of the world is not insured and that in the poorest countries just 5% of people have insurance.
He talks about the possible benefits of micro-insurance for people who say have a fruit kiosk. He says that if they live on just a few dollars a year, they could get health insurance for their whole family for just $1 a week.
He says that in most cases currently those people hit but climate change will borrow money from a loan shark, which they will then be unable to pay back. Micro-insurance, he says could help a family protect themselves from these shocks.