Reinsurance News
climate risk
Climate risk related insurance and reinsurance news and analysis.
The impacts of climate related risks are a key topic for the insurance and reinsurance industry, while providing risk transfer solutions to hedge against and protect from climate risk related losses is an important area of innovation for the market.
Demex launches parametric snow insurance products
24th August 2022
The Demex Group, a noteworthy provider of comprehensive solutions for modelling, assessing, and managing climate-linked risks at scale, has announced the launch of new snowfall insurance products. Revenue and operating costs in snow-sensitive businesses are experiencing unexpected volatility driven by the changing nature of winter storms. Demex snow insurance hopes to deliver ... Read the full article
ARC and partners launch climate insurance pilot project
16th August 2022
A climate insurance pilot for agricultural value chains has been launched for Côte d'Ivoire rice farmers, initiated by the African Risk Capacity Limited (ARC Ltd), the Côte d'Ivoire Environment and Sustainable Development Ministry (MINEDD), and the United Nations Development Programme (UNDP) in Côte d’Ivoire. According to the announcement, the project aims ... Read the full article
BMA sets out climate risk management expectations for insurers
12th August 2022
The Bermuda Monetary Authority (BMA) has issued a new guidance note on the management of climate risk for commercial insurers. The guidance note outlines the BMA’s expectations for commercial insurers and insurance groups regarding their management and reporting of climate change risks. Focussing on corporate governance and risk management practices for climate ... Read the full article
Arbol forms first captive insurer dedicated to climate risk management
5th August 2022
Insurtech platform and FinTech company Arbol has announced the formation of Climate Risk Insurance Company – the first captive insurance company dedicated to climate risk management. Based in Connecticut, Climate Risk Insurance Company will focus on helping businesses and corporations manage a range of risks, like temperature, rainfall, and catastrophic storms. The ... Read the full article
Climate change events increasing claims paid in Australia
2nd August 2022
Climate change-induced natural catastrophe events have resulted in an increase in claims paid by Australian property insurers and consequently pushed their loss ratio up from 66.1% in 2019 to 84.6% in 2021, according to a new report from GlobalData. The loss ratio is expected to remain above the 80% ... Read the full article
Cat models still not fully reflecting climate change, says RenRe CEO
29th July 2022
Commercially available catastrophe models are still not properly reflecting the impacts of climate change as an evolving phenomenon, according to RenaissanceRe’s Kevin O’Donnell. Speaking on an earnings call following the release of RenRe’s Q2 results, O’Donnell addressed a variety issues, including the poor historic performance of cat models. The reinsurer fell ... Read the full article
Cost of severe UK flood events could surge by 2050 – JBA
29th July 2022
The cost of a once-in-200-year flood event could escalate by 42% to £5bn by the middle of the century under an intermediate emissions scenario, according to a new report from JBA Risk Management. The report also finds that, in a scenario in which no actions were taken to ... Read the full article
Change in underwriting practices key to achieve net zero: Kennedys
26th July 2022
Changing re/insurers underwriting practices is key for businesses' net zero transition, according to a recent report by global law firm Kennedys. The report, titled 'Rewriting the risk: Addressing the challenges of climate change', focuses on the ‘environmental’ pillar of environmental, social and governance (ESG) considerations. It also considers the impact of climate ... Read the full article
A “staggering” portion of Europe is currently exposed to drought risk
21st July 2022
A “staggering” portion of Europe is currently exposed to risk of drought, according to a new report by The European Commission’s Joint Research Centre. The drought in much of Europe is critical, the report says, as the winter-spring precipitation deficit was exacerbated by early heatwaves. River discharge in multiple countries is severely ... Read the full article
WTW announces acquisition of Butterwire
13th July 2022
Re/insurance broker WTW has announced the acquisition of Butterwire – a FinTech provider of data analytics, AI, and machine learning platforms. The acquisition will help to further strengthen WTW’s world-leadingcli capabilities in delivering climate risk analytics to organisations around the world. Butterwire’s team of research, data science and software engineering professionals offer ... Read the full article
Insurance premiums to reach record highs due to inflation, climate change – Matic
1st July 2022
Matic, an insurtech platform, says that home insurance premiums in the US are rising faster than ever before, increasing at a record rate of 5.5% between June 2021 and May 2022. According to Matic’s 2022 mid-year findings, which aggregated data from a random sample of 70,000 insurance policies, a ... Read the full article
G7 leaders pledge to scale up CDRFI
29th June 2022
The leaders of the Group of Seven (G7) met in Elmau, Germany, between June 26th and 28th. In a statement issued after the meeting, the G7 committed to scaling up climate and disaster risk finance and insurance (CDRFI) and working towards a Global Shield against ... Read the full article
Sompo Group affirms commitment to climate policies
28th June 2022
The Sompo Group has announced a new scheme called SOMPO Climate Action as part its medium-term management. The proposed action is to help in adapting to and mitigating climate change while contributing to a societal transformation, beginning this year. The firm said that it has also joined the Net Zero Insurance ... Read the full article
Climate policy weakest in countries reliant on fossil-fuel income
28th June 2022
The governments of Bangladesh, Malaysia, the Philippines, Chile, and Senegal are most strongly committed to prioritising climate when making public policy, according to new analysis by Oxford Analytica and WTW. Commitment on climate policy in the emerging world is strongest in countries most vulnerable to the impacts of global warming ... Read the full article
Insurance industry must follow through on net-zero: Selwin Hart
28th June 2022
Selwin Hart, the UN's Assistant Secretary-General for Climate Action, made a speech at the tenth anniversary of UNEP’s Principles for Sustainable Insurance Initiative. In it he says that the world is way off track from limiting global warming to 1.5 degrees Celsius and preventing the worst impacts of ... Read the full article
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