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Swiss Re calls for a new kind of CRO

Swiss Re has called for nations to establish the position of “country risk officer” to help mitigate increased risk associated with climate change.

Speaking at a conference in Switzerland last week, Swiss Re Chairman Peter Forstmoser said a national role would help “develop an integrated perspective across the social, economic and environmental risks of a country”.

He also called for the use of private-public partnerships to mitigate risk particularly in developing nations, where insurance penetration is often low.

“New forms of private-public risk transfer will allow governments, development banks, or non-governmental organisations to leverage their funds through the use of insurance and capital market instruments.”

Swiss Re cited its own example, having recently secured a lead role in the Caribbean Catastrophe Risk Insurance Facility, which is designed to limit the financial impact of catastrophic hurricanes and earthquakes to 16 Caribbean governments by facilitating quick short-term liquidity when a policy is triggered by an event.