Climate change is industry’s ‘biggest strategic risk’
Climate change is this year’s greatest strategic risk for the insurance industry, according to an Ernst & Young report.
The report says changing weather patterns as a consequence of global warming will lead to insured losses from events such as windstorm or flood, with insurers having to then scrutinise their insurability risks.
Other consequences of climate change for the industry include increases in mortality and health problems, environment-related litigation, political risk linked to conflicts for control of resources, and effects on capital markets.
Strategic risks for insurers include demographic shifts in core markets, catastrophic events such as floods, hurricanes, earthquakes, terrorist attacks and pandemics, emerging markets and regulatory intervention.
The report says changing weather patterns as a consequence of global warming will lead to insured losses from events such as windstorm or flood, with insurers having to then scrutinise their insurability risks.
Other consequences of climate change for the industry include increases in mortality and health problems, environment-related litigation, political risk linked to conflicts for control of resources, and effects on capital markets.
Strategic risks for insurers include demographic shifts in core markets, catastrophic events such as floods, hurricanes, earthquakes, terrorist attacks and pandemics, emerging markets and regulatory intervention.