How does the insurance industry deal with risks associated with climate change?
The latest IPCC assessment report indicates that global sea levels and surface air temperatures will continue to rise, and heavy rainfall events in some regions will become more frequent. These changes, combined with rapidly growing population, urbanization and wealth will result in significant risks to property and lives. By working with the government and public sector, the insurance industry can support management of these risks, through modelling and pricing, risk transfer solutions and risk mitigation strategies. This presentation will outline trends in past losses, how climate change may impact weather events and some considerations in modelling the risks and losses of these perils. It will also discuss some of the current practices used by the insurance industry to support resilience and adaption measures.