European Insurance and Occupational Pensions Authority (EIOPA)’s Post

Climate change should be at the forefront of ERM for corporations with physical assets in nat cat exposed areas across the globe.   #climatechangeisreal

As climate change escalates the potential severity of certain weather-related natural disasters like hurricanes and wildfires, corporations face increased threats to their operations and financial stability. In the following article, Anna Pereira, SVP of SRS Bermuda, Dives into, - statistical climate data surrounding hurricanes, - the role of captive insurance in climate change, - and what a captive can do for you. Read now to learn more: https://hubs.ly/Q02DW-WR0 #climate #insurance #industryknowledge #themoreyouknow #education #article #captiveinsurance #insurancecompanymanagers

Economic losses from natural disasters hit $114 billion in 2023 with insurance covering 70% in the United States alone. Fascinating takeaways from this recent Aon report. https://bit.ly/3TuHj8C #BetterDecisions #ExtremeWeather #NaturalDisaster #ClimateRisk 

Sobering insights from Swiss re. The theme of flood severity and adaptive response continues to propagate from multiple key players in global insurance markets.

By FEMA’s estimates, only 35% of Americans live in areas that have adopted the latest building codes, leaving millions vulnerable to extreme weather as we head into hurricane and wildfire seasons. While we can’t prevent every climate-related hazard or disaster, there are simple tasks we can do that will not only reduce the risks of today, but prepare our homes and communities for years to come.

First half 2024 #climatechange related #insurance losses were $62 billion, ~70% above the 10 year average of $37b, according to Munich Re. Total climate change related losses so far are $120 billion ($62b of which where covered by insurance). Read the Munich Re report here: https://lnkd.in/dPqqYnmt? #insuranceindustry #climate #climatecrisis #globalwarming

This is an insightful take on the role that climate change is having on insurance increases from industry experts in this piece by Axios' Andrew Freedman: https://lnkd.in/drNR7C8y I agree with the sentiment that #climatechange is just one piece of a complex puzzle regarding increasing #insurance costs across all sectors of society. However, its also important to think about the compounding effect of additional assets in need of insurance, via the process of economic development and urbanization, as not being isolated from the increased exposure to climate risk. We have more assets in risky areas, that are becoming more prone to climate disasters. Ultimately, its the combination of those two things that is important.

"Instead, climate adaptation actions to reduce the impacts from extreme events are needed, the report states. "So, too, is reducing the severity of climate change in the first place. "'Yet in the face of climate change, adaptation and insurance can only go so far,' the report states. 'Mitigation of greenhouse gas emissions is also essential to counter the build-up of physical risks.'" - Andrew Freedman, reviewing in Axios the Swiss Re report, "sigma 1/2024 in short" (https://lnkd.in/gE9qkvnm) "Overall natural disaster insured losses have increased at a faster rate than the global economy during the past three decades, the report found, and it expects this to continue. "The insured loss burden has more than doubled between 1994-2023, Swiss Re found, and it projects the next doubling to take place within just the next decade. "'To date economic growth, urbanization and the associated accumulation of assets that need insuring have been the main driver of rising losses," the report states.'" "At the same time, though, Swiss Re echoes other studies in finding that climate change will play an increasingly large role in driving future costs. "What's next: According to Swiss Re, which along with its competitors has long been sounding the alarm on climate change, it won't be enough to simply raise the costs of insurance to compensate for more loss expenses. "This will simply price too many people out of insurance markets, as is already being seen in Florida, Louisiana and California. "Instead, climate adaptation actions to reduce the impacts from extreme events are needed, the report states. So, too is reducing the severity of climate change in the first place. "'Yet in the face of climate change, adaptation and insurance can only go so far,' the report states. 'Mitigation of greenhouse gas emissions is also essential to counter the build-up of physical risks.'" #art #artcollectors #artcollections #museums #privatemuseums #stewardship #climatechange #climaterisk #financialrisk #enterpriserisk #insurance #fineartinsurance

Climate change is a global concern that impacts every sector of society, including the insurance industry. As the world continues to experience the consequences of climate change—rising sea levels, droughts, and extreme weather events, insurers are struggling to manage the financial risks associated with these events—click the link! https://lnkd.in/gf_EvZnp #insurance #insurancepolicy #insuranceagent #insuranceagency #warranty #lifeinsurance #homeinsurance #carinsurance #travelinsurance

📣 Investing in insurance-linked strategies in a changing #climate Global warming is a concern for the #insurance industry, as well as for #ILS investors. Check out our white paper to find out how ILS managers can weather the storm and turn the challenge into an opportunity!