Climate Change is Hurting the Insurance Industry, and Only 8% are Preparing Adequately 

Environmental News from the UK: 

Climate change is hurting the insurance industry, and only 8% of insurers are preparing adequately for its impact, consultants Capgemini and financial industry body Efma said in a report on Tuesday.

Insured losses from natural catastrophes have increased 250% in the last 30 years, with perils such as wildfires and storms seen as particularly impacted by climate change, causing an even faster rise in insured losses, the report said.

Insurers’ main catastrophe risk in the past was typically from hurricanes in U.S. states such as Florida and Texas, Seth Rachlin, a global insurance industry leader at Capgemini, told Reuters.

“We’ve seen with the flooding in Europe and wildfires in Australia, wildfires in California; it’s becoming a broader geographic issue, affecting a broader percentage of the earth.”

Germany and other parts of Europe were hit by flooding in July 2021, while heavy rains deluged Australia’s east coast earlier this year. 

European insurers are leading the way in embedding environmental, social, and governance issues in insurance underwriting and investment and in focusing on risk prevention, Rachlin said.

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Source: Reuters

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