KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL

FANews
FANews
RELATED CATEGORIES

A fifth of countries worldwide at risk from ecosystem collapse as biodiversity declines, reveals pioneering Swiss Re index

23 September 2020 Swiss Re

• 39 countries have ecosystems in a fragile state on more than a third of their land – Malta, Israel, Cyprus, Bahrain and Kazakhstan have the lowest Biodiversity and Ecosystems Services (BES) ranking
• 55% of global GDP depends on high-functioning BES
• Major economies in Southeast Asia, Europe and the US exposed to BES decline
• Swiss Re Institute BES Index enables businesses and governments to factor in biodiversity and ecosystem issues into economic decision-making

Countries across the world are reliant on a range of services that are based around their natural ecosystems. Biodiversity and Ecosystem Services (BES) include such necessities as food provision, water security and regulation of air quality that are vital to maintaining the health and stability of communities and economies.

Over half (55%) of global GDP, equal to USD 41.7 trillion[1], is dependent on high-functioning biodiversity and ecosystem services. However, a staggering fifth of countries globally (20%) are at risk of their ecosystems collapsing due to a decline in biodiversity and related beneficial services, reveals a new study by Swiss Re Institute.

The study, which is based on Swiss Re Institute’s new Biodiversity and Ecosystem Services Index, shows that both developing and advanced economies are at risk. The report finds developing countries that have a heavy dependence on agricultural sectors, such as Kenya or Nigeria, are susceptible to BES shocks from a range of biodiversity and ecosystem issues.

Among G20 economies, South Africa and Australia top the rankings of fragile BES. The well-known impact of water scarcity is a driver for these countries, alongside factors such as coastal protection and pollination. Brazil and Indonesia enjoy the highest percentage of intact ecosystems within the G20. However, the countries’ strong economic dependency on natural resources highlights the importance of sustainable development and conservation to the long-term sustainability of their economies.

An upcoming United Nations Summit on biodiversity on 30 September 2020 is set to call for “urgent action on biodiversity for sustainable development“ as global efforts to improve in this vital area have fallen well below UN targets to halt biodiversity loss.

Click here to read more...

Quick Polls

QUESTION

Which of the following factors will make the biggest difference to the profitability of a short-term insurance brokerage over the next five years?

ANSWER

Implementing tech-backed distribution platforms
Diversifying into specialist risk management & risk advisory services
Renewing focus on the broker-client relationships
fanews magazine
FAnews October 2020 Get the latest issue of FAnews

This month's headlines

Transformation trends - Tough commission procurement rule could dent insurers’ B-BBEE scorecards
Business interruption losses… the uninsurable
Are annuities tailor-made for today’s investors?
Reframing clients’ notions about retirement
In search of sustainable drought solutions
From risk to resilience - What the latest mindshift means for insurers
Subscribe now