Climate change threatens ability of insurers to manage risk

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From The Guardian:

“The ability of the global insurance industry to manage society’s risks is being threatened by climate change, according to a new report.

The report finds that more frequent extreme weather events are driving up uninsured losses and making some assets uninsurable.

The analysis, by a coalition of the world’s biggest insurers, concluded that the “protection gap” – the difference between the costs of natural disasters and the amount insured – has quadrupled to $100bn (£79bn) a year since the 1980s.

Mark Carney, the governor of the Bank of England, warns in the new report that: “Over time, the adverse effects of climate change could threaten economic resilience and financial stability [and] insurers are currently at the forefront.”

The ClimateWise coalition of 29 insurers, including Allianz, Aon, Aviva, Lloyd’s, Prudential, Swiss Re and Zurich, conclude that the industry must use more of its $30tn of investments to help fund increased resilience of society to floods, storms and heatwaves.”

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