climate adaptation

Insurance products, reinsurance and insurance-linked securities (ILS) are all examples of financial shock absorbers for climate change risks, but while it can encourage behavioural change through the sending of price signals, a new report from McKinsey highlights the reality that the sector business models may need to change.

For the first time in the history of the annual World Economic Forum’s Global Risks Report all of the top five global risks in terms of likelihood are related to climate change and environmental issues.

The world’s largest institutional investors are increasingly vocal about the need to accelerate efforts to tackle the climate crisis, with many of the same group also contributing a significant proportion of the insurance-linked securities (ILS) market’s capital base.

Investment banking giant Goldman Sachs published an updated environmental policy yesterday, with catastrophe bonds, insurance-linked securities (ILS) and other climate related risk and reinsurance products again taking a central stage within it.

The economic consequences of climate change may prove particularly severe for insurance and reinsurance companies in the property and casualty (P&C) space, presenting both a threat and an opportunity, but the latter may require access to capital to take full advantage of it.

Climate change adaptation projects and the need for them are rising up the agenda, as a recent surge in damages from severe weather and climate related catastrophe events concentrates the mind on the importance of investing in this area.

Globally the risks posed by and impacts created by droughts and heatwaves have been growing in recent years, yet drought itself remains a widely underestimated natural hazard, according to a recent report published by the worlds largest reinsurer Munich Re. According to Munich Re’s report, there have been around ten loss-producing droughts around the world […]

Climate proofing and climate adaptation are becoming hot topics and receiving more coverage in recent weeks as countries begin to explain their plans for adapting and climate proofing the built and natural environment to combat the effects of climate change. In the UK, government departments have been unveiling plans to upgrade roads, move fish to […]