The impact of these events on the provision and cost of insurance is now becoming apparent and is reflective of a general review of the insurance cover for natural disasters world-wide. The frequency and intensity of these types of events seems to be on a rising trend creating further management challenges for private and public enterprises.
BIS central bankers’ speeches  7  Institutional response Institutional language is now coloured by words such as austerity, crisis, collapse, disaster response, instability, volatility, vulnerability and, above all, uncertainty. The GFC exposed the weaknesses of risk management to the World and especially the inadequacy of institutions that allowed their risk management practices to be subverted by the drive for short term profitability.