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Asia’s Middle Class: On the Brink of Climate Change Disaster, Warns Hong Kong Reinsurer
Special Report | Asia's middle class threatened by climate change, according to Hong Kong-based reinsurer
Individuals in developing economies could be pushed back into poverty due to natural disasters and lack of insurance coverage, warns the CEO of Peak Re.
Middle-class families in the Asia-Pacific region are the ones most at risk from natural disasters due to climate change, according to Franz-Josef Hahn, the CEO of Peak Re, a reinsurance firm based in Hong Kong. These climate-related catastrophes could potentially disrupt economic growth and social harmony in the region.
Hahn emphasized in a Monday interview that there is a pressing need for insurance firms in the area to enhance coverage for the middle class, specially as the occurrences and intensity of weather-related catastrophes are on the rise.
The demand is particularly high in developing markets such as China, India, and Southeast Asia. In these regions, the insurance coverage is sparse and individuals are not financially stable, he further explained.
"In present times, the middle class makes up the largest portion of the population in developed nations, playing a crucial role in maintaining societal stability and continuous wholesome development," he expressed. "Asian economies are comparatively new. Without sufficient insurance against natural disasters and health issues, the middle class could quickly slide back into poverty."
Hahn made his remarks following a series of significant typhoons that hit Asia. The extremely powerful Super Typhoon Yagi, considered one of the most intense storms the area has seen in years, prompted heavy rainfall and floods in southern China, Myanmar, Laos, Vietnam and Thailand this month, resulting in over 500 fatalities.
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