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.
Munich Re aims to push boundaries of climate insurability, say leaders
23rd September 2022
Executives at Munich Re say the company is aiming to “push the boundaries of insurability” in its efforts to help understand and mitigate the impacts of climate change. Speaking at a briefing during the 2022 RVS event in Monte Carlo last week, leaders at the German reinsurance company said they see ... Read the full article
Insurers’ climate risk management adequate for profitability implications: DBRS Morningstar
23rd September 2022
A new note from DBRS Morningstar highlights that even though there has been a number of record-breaking extreme weather events that have occurred across the world in H1 2022, the impact on the profitability of the global P&C insurance industry has been mitigated by the insurers’ response to climate change. Despite ... Read the full article
Howden launches voluntary carbon credit insurance product to help scale market
7th September 2022
International re/insurance broker Howden has announced the launch of a carbon credit invalidation insurance solution to increase confidence in the Voluntary Carbon Market (VCM). To develop the product, Howden worked with the carbon finance business, Respira International, and Nephila Capital, an investment manager specialising in reinsurance risk. They were also advised ... Read the full article
Critical role for re/insurers in net zero transition & enabling climate tech: PwC
3rd September 2022
With the back-in-person Monte Carlo Rendez-vous reinsurance industry event happening in just a week's time, PwC is highlighting the important role of re/insurers and underwriters in supporting the transition to net zero, as well as in enabling climate tech innovation. PwC is hosting a special session (details below) at the ... Read the full article
AIG sued by petroleum firm in climate litigation dispute
31st August 2022
AIG’s National Union Fire Insurance Company has been sued by Sunoco subsidiary Aloha Petroleum for refusing to cover the costs of defending climate-related claims by local governments in Hawaii. It’s thought that this case could set a precedent as to whether firms are protected against climate damage claims, as more insurers ... Read the full article
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
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