The Democratic convention kicks off in Chicago
1Digest
The podcast begins with a discussion of the Democratic National Convention in Chicago and Vice President Kamala Harris's campaign for the Democratic nomination. It then delves into the recent protests and political unrest in Bangladesh, exploring their impact on the country's garment and shoe industry, a crucial economic engine. The podcast further examines the challenges faced by startups in the US, including a surge in failures due to dwindling funding and rising interest rates. Finally, it explores the impact of climate change on the insurance market, highlighting how insurers are responding to increased costs and risks associated with extreme weather events.
Outlines
Political Landscape and Economic Impacts
The podcast discusses the Democratic National Convention in Chicago, Vice President Kamala Harris's campaign, and the impact of recent turmoil in Bangladesh on the garment and shoe industry.
Startups and Funding Challenges
The podcast examines the current challenges faced by startups in the US, including a surge in failures due to dwindling funding and rising interest rates.
Climate Change and the Insurance Market
The podcast explores the impact of climate change on the insurance market, highlighting how insurers are responding to increased costs and risks associated with extreme weather events.
Keywords
Parametric Insurance
A type of insurance that pays out based on a specific event, such as a flood reaching a certain water level, rather than the actual cost of damage.
Underwriting Losses
Losses incurred by insurance companies when the cost of claims exceeds the premiums collected.
Climate Change Adaptation
Measures taken to adjust to the actual or expected effects of climate change, such as building codes and infrastructure improvements.
State Insurers of Last Resort
Government-backed insurance programs that provide coverage to individuals and businesses who cannot obtain insurance from private insurers.
Risk Modelling
The process of analyzing and quantifying the potential risks associated with a particular event or activity, such as a natural disaster.
Bangladesh Garment Industry
A major economic sector in Bangladesh, responsible for a significant portion of the country's exports and employing millions of workers.
Q&A
How is climate change impacting the insurance market?
Climate change is making extreme weather events more severe and frequent, leading to higher costs for insurers and causing some to withdraw from certain regions or states.
What are some of the challenges faced by startups in the US?
Startups are facing a funding crunch due to rising interest rates and a decline in venture capital investment, leading to a surge in failures.
How is the garment and shoe industry in Bangladesh affected by the recent political turmoil?
The protests and unrest have disrupted production, leading to factory closures and some global brands shifting orders to other countries, raising concerns about the industry's future.
What are some of the solutions being explored to address the challenges posed by climate change to the insurance market?
Solutions include parametric insurance, which pays out based on specific events, and improved risk modelling using data and technology to better assess risks.
Show Notes
Start-ups, legacy groups and policymakers are working out how to operate in areas of rising weather risks, and start-up failures shot up 60% in the past year. Plus, top international fashion brands are shifting orders away from Bangladesh because of recent political turmoil.
Mentioned in this podcast:
FT series: the Uninsurable World
Global fashion brands cut Bangladesh orders after turmoil
Start-up failures jump by 60% as founders face hangover from boom years
The Democratic National Convention hits Chicago
The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Molly Nugent, Andrew Edgecliffe-Johnson, Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.
Read a transcript of this episode on FT.com
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