Climate change and insurance: This is how insurance companies have to position themselves in order to master future challenges

Climate change and insurance: This is how insurance companies have to position themselves in order to master future challenges

According to a report from www.capital.de

The effects of climate change are no longer just theoretical. Natural disasters cause billions of dollars in damage every year, which poses major challenges for the insurance industry. According to the World Property an Casualty Insurance Report by consultancies Capgemini and Qorus, climate change has led to a 3.6-fold increase in insured losses and a doubling of uninsured losses over the last 30 years. Around 40 percent of the insurers surveyed see the challenges posed by climate change as a top priority.

This increase in natural disasters and their losses is having a significant financial impact on the insurance industry. In order to continue to be successful, insurance companies must now make structural changes. This includes, among other things, integrating climate risks into products and services, establishing strong governance and focusing on sustainability and resilience. Companies that are already implementing these adaptations are proving to be successful in terms of climate resilience.

For consumers, this means that they should check whether their policies still offer sufficient protection. Natural disaster insurance should be considered, particularly in regions that are at risk from natural disasters. However, it should also be borne in mind that the G7 protective umbrella against climate risks was founded to ensure rapid help for those affected in the event of a disaster.

So it's clear that climate change is having a significant impact on the insurance industry and consumers. Adapting insurance policies to current circumstances and supporting global disaster relief initiatives are important steps in meeting the challenges of climate change.