The global insurance industry's ability to manage public risk is threatened by climate change. According to experts, more frequent extreme weather events lead to uninsured losses and make some assets uninsurable.
The analysis by a coalition of the world's largest insurers concluded that the “security hole”, the difference between disaster losses and insured premiums, has quadrupled to $100 billion a year since the 1980s.
“Every insurer should take a proportionate approach that reflects its exposure to the financial risks of climate change, and the nature, scale and complexity of its business. DFS understands that climate change affects each insurer in different ways and to varying degrees depending on size, complexity, geographic distribution, business lines, investment strategies and other factors. DFS realizes that insurers do not have the same level of resources to manage these risks and are at different stages of development,” says the DFS article.
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