Leah Kelvin
Active member
Climate change, in a major way, affects the insurance industry. This is what has resulted in the increase of such events as hurricanes, floods, forest fires and gales. The growth of destructive actions leads to higher payments by insurance companies for affected assets and damages on persons accounts. The underwriting approach should be adjusted by insurers towards climate related perils using both analytics and climate models so as to effectively price them. Insurers may hike premiums on insurance coverage of high risk areas prone to weather-related losses due to increasing climate risks. For some policies, insurers might not provide coverage for properties located at high risk areas leaving property owners with financial exposure. Generally, climatic change alters the frequency and magnitude of weather-related disasters causing shifts in availability and pricing for insurance products.
The focus on resilience toward climate change adaptation is increasing among insurers. Property retrofits or flood defenses can be recommended to policyholders as one measure that can reduce their vulnerability to hazards including flooding. Besides, new forms of insurance like microinsurance and parametric ones have been born out this phenomenon which seeks to address emerging climate-related risks as well
The focus on resilience toward climate change adaptation is increasing among insurers. Property retrofits or flood defenses can be recommended to policyholders as one measure that can reduce their vulnerability to hazards including flooding. Besides, new forms of insurance like microinsurance and parametric ones have been born out this phenomenon which seeks to address emerging climate-related risks as well
