If you structured the payout triggers for claims the right way, insurance can be an excellent way to launder money or move bribes. The thing to watch for is parametric rather than actual damage triggers. If the wind blows at "X" speed we send money to the insured, regardless of actual damage incurred
In the real world money and power are fungible.*
Unfortunately for climate grifters, at the moment this just looks like a way for developed nations to send premiums to insurance and reinsurance companies.
From Reuters via Yahoo Finance, November 21:
- Money would cover premiums for pre-arranged protection
- Would provide cover of $200-$300 mln a year
- To form part of climate damage fund talks at COP28
Wealthy nations could provide 100 of the world's most vulnerable countries a combined $25 billion in annual protection against climate disasters for as little as $10 million per nation, research published on Tuesday showed.
The findings come a week ahead of the U.N.'s COP28 climate summit in Dubai, where countries are set to launch a world-first fund to help countries cope with the costs of climate damage.
With rich nations under pressure to fill the pot, researchers from the University of Cambridge's Institute for Sustainability Leadership said they had reached a "breakthrough" in understanding how to use this money to protect countries from the spiralling cost of storms, drought and rising sea levels.
First, their findings confirm that the world's most climate-vulnerable countries remain insurable until 2050 among reinsurers and others in the capital markets, based on modelling of the risks climate change is inflicting on them.
"This is massive, because there is the preconception that these countries are untouchable," Dr Ana Gonzalez Pelaez, lead author on the study, which was shared exclusively with Reuters ahead of publication. "Actually, we do have the figures that show that they can be insured," she said.
Second, the researchers demonstrated how risk sharing systems - essentially, insurance - could use contributions from donor countries to fund climate damage protection "premiums", that would massively scale up the protection available to vulnerable nations.
Donor funds of $10 million per recipient country, when used as premium support, could yield $200 million to $300 million per country in pre-arranged annual protection, for a combined $25 billion if rolled out across 100 countries, the researchers said.
The scheme would use this relatively modest donor funding to provide an insurance against far more costly, but unpredictable, climate risks like hurricanes and floods, which may only occur once per decade or every few decades.
"The idea is to use that new source of funding to protect these countries at a structural level," said Rowan Douglas, CEO of Climate Risk and Resilience at UK-based insurance broker Howden, which co-authored the research.....
....MUCH MORE
*On a related note:
Did you know that because money and political power are fungible you can launder your ill-gotten gains into political contributions and end up with squeaky clean political influence with no one the wiser? And then use that influence to earn 'clean' money? Well now you know.
—"Okay Kids: Here's One Of The Reasons We Had That Whole Ukraine Maidan 2014 Revolution Thingy"
That's how sophisticated money launderers do it.
