climate change


Nat cat protection gap widened in 2019 including in North America

Despite the fact insurance and reinsurance markets become increasingly sophisticated in their use of technology to reach customers and provide enhanced coverage, in North America, perhaps the most advanced economy in insured terms, the natural catastrophe protection gap actually widened by over 7% in 2019. It should perhaps be considered an read the full article →

Cat bond & ILS coupons should compensate as climate increases hurricane risk: Twelve Capital

Climate change, variability and the expected increases in Atlantic hurricane risk that these factors will drive, is still likely to be compensated for in catastrophe bond and private insurance-linked securities (ILS) coupons, as pricing should rise and consequently returns, in line with the risk, according to ILS manager Twelve Capital. Twelve read the full article →

Understanding & pricing secondary perils crucial to long-term profitability

It's hard to ignore that in recent years the insurance and reinsurance market has been beset by losses from so-called secondary perils such as wildfires and floods, which makes the understanding and pricing of these risks absolutely crucial to companies long-term profitability, analysts at J.P. Morgan have said. This also applies read the full article →

Leadenhall assists on physical climate risk disclosure guidelines

The Climate Measurement Standards Initiative (CMSI), an Australian led collaboration on the physical risks of climate change and their disclosure, has developed a set of open-source, voluntary guidelines to help banks, financial institutions and insurers better assess the risk and quantify the costs of climate-related damage. London-headquartered insurance-linked securities (ILS) and read the full article →

Climate change a systemic risk without global action: Munich Re’s Jeworrek

Global action to combat climate change is essential to avoid the exposure becoming systemic in nature, which might cause it to become less insurable, according to Munich Re's CEO of Reinsurance, Torsten Jeworrek. Speaking during a media briefing held as a virtual replacement for the Monte Carlo Rendez-Vous event, which was read the full article →

Undeniable climate change impact starting to get priced in: Hilti, Credit Suisse

Following the increased severity and frequency of wildfires, droughts and floods in recent times, the undeniable impact of climate change on water-related catastrophes is starting to get priced in and risk premiums are adjusting, according to Niklaus Hilti, Head of Credit Suisse’s Insurance-Linked Strategies division. In a recent interview, experienced insurance-linked read the full article →

Weather risks remain insurable (with adaptation actions), says Swiss Re

Insurance and reinsurance companies need to adapt to a "dynamic risk landscape" to incorporate socio-economic factors, climate change research and risk mitigation in their modelling, in order to keep weather risks insurable, Swiss Re warned today. In 2019, extreme weather events were once again the main driver of losses for the read the full article →

Risk transfer, reinsurance key to address reality of climate change: Guy Carpenter

The reality of climate change needs to be addressed and addressed fast by countries, governments and public sector entities, and the risk transfer, reinsurance and insurance-linked securities (ILS) sectors are well-placed to assist, according to Guy Carpenter. The catastrophe bond is highlighted as a key risk transfer and resilience financing tool read the full article →

Climate change could drive extreme weather losses 40% higher: Researchers

Economic losses from extreme weather related events could increase by 40% by 2040 due to the influence of climate change, according to researchers. Researchers from the Cambridge Centre for Risk Studies found that climate change could add some $100 billion of additional losses to extreme weather events globally, with an increase read the full article →

Hurricane claims could rise 50%, climate may make premiums unaffordable, warns QBE

Australia headquartered global insurance and reinsurance group QBE warned today that parts of the globe risk becoming uninsurable as climate change is forecast to significantly increase claims costs and could make premium rates soar. QBE announced results today that were hit by higher catastrophe and weather related claims across its property read the full article →