Climate change threatens insurance: Financial expert warns of priceless consequences and uninsurable risks

Climate change threatens insurance: Financial expert warns of priceless consequences and uninsurable risks

According to a report by www.t-online.de, scientists warn of extreme weather due to climate change. Insurance companies are also sounding the alarm – and are talking about priceless consequences. R+V CEO Norbert Rollinger warned in an interview with the VRM media group that with three or four degrees of global warming, insurance coverage in the building sector will practically no longer be possible. This could result in insurance becoming so unpredictable and expensive that an economically viable offer can no longer be made.

More extreme weather events are looming
The Paris Climate Agreement of 2015 sets out the goal of stopping global warming to as little as 1.5 degrees and thus preventing the worst consequences of climate change. Scientists warn that every tenth more warming would have even more catastrophic consequences in the form of more extreme weather events.

Based on this information, it is clear that climate change will have a significant impact on the insurance market. The increasing number and intensity of extreme weather events will lead to higher amounts of damage, which in turn will lead to increasing insurance premiums. This could create significant financial challenges for consumers and even make insurance coverage unaffordable for some building owners. In addition, insurance companies may have difficulty making commercially viable offers, which could put strain on the entire industry. It is therefore crucial that climate adaptation measures are taken to minimize the impact on the insurance market and consumers.