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.
Germany backs new WFP and ARC climate insurance initiative
21st September 2018
The United Nations World Food Programme (WFP) has signed its first climate risk insurance policy with the Africa Union’s African Risk Capacity (ARC), with €10 million of funding provided by the German Government. The policy, called ARC Replica, is a unique climate risk financing mechanism that is supported by WFP and ... Read the full article
ESG integration entails both social and financial benefits: A.M. Best
31st August 2018
In recent years, investors and shareholders have been increasingly judging re/insurers on their incorporation of a range of Environmental, Social and Governance (ESG) factors, but consideration of these risks and opportunities could also result in significant financial benefits, according to a recent report by A.M. Best. The report observed that, while ... Read the full article
Society must prepare for more frequent and severe extreme weather events: Swiss Re
17th August 2018
Martin Bertogg, Head of Catastrophe Perils at reinsurance giant Swiss Re, has called on society to adapt and prepare for increasingly frequent and severe occurrences of extreme weather conditions, such as the heatwaves and dry spells witnessed in recent times. The Swiss Re Institute, a division of Switzerland-based reinsurer Swiss Re, ... Read the full article
Flood damages could double if coral reef destruction continues
28th June 2018
Annual expected damages from floods could double without the coastal protection benefits afforded by coral reefs, while annual storm damages could triple, according to a new study by Nature Communications. The study identified coral reefs as a vital component of coastal protection for both people and property, and calculated that, for ... Read the full article
Germany’s floods a ‘foretaste’ of future climate losses: Munich Re’s Faust
15th June 2018
The severe flooding that has affected western and southern Germany since mid-May 2018 is a ‘small foretaste’ of the effects of climate change on future weather-related disasters, according to Eberhard Faust, Munich Re’s Head of Research for climate risks and natural hazards. Many regions of the country have endured non-stop thunder, ... Read the full article
Climate change and aging populations pose greatest ESG risks, reports Moody’s
13th June 2018
Climate change and aging populations pose the greatest Environmental, Social, and Governance (ESG) risks to European re/insurers, according to a new survey by Moody’s Investors Service. Over 90% of respondents to Moody’s survey, which polled 15 European re/insurance companies, said that ESG is an important consideration for their businesses and brand ... Read the full article
UK Gov Environmental Committee proposes mandatory climate risk reporting
4th June 2018
The UK Government’s Environmental Audit Committee has recommended that it should be mandatory for large companies and asset owners to report their exposure to climate change risks and opportunities by 2022. The Committee’s new report on Greening Finance concluded that such a measure would encourage companies to focus on long-term considerations ... Read the full article
Climate measures proposed as New Zealand’s April storm losses reach $72mn
4th June 2018
Insured losses from New Zealand’s recent April storms have reached NZD $72 million (USD $50 million), prompting a boost in funding to the country’s emergency response section and a series of climate resilience measures, according to the Insurance Council of New Zealand (ICNZ). The storm battered New Zealand’s North Island over ... Read the full article
Weather & Climate Risk Innovation Network launched by Aon
24th May 2018
Sector knowledge, experience and expertise from across Aon has been galvanised to create its new Weather & Climate Risk Innovation network, after the firm's Impact Forecasting unit estimated losses from weather events in 2017 topped out at approximately $344 billion. The initiative has been created to address weather and climate risks ... Read the full article
Philippines spearheads region-wide ASEAN disaster risk database
21st May 2018
The Philippines has begun sharing disaster risk information with its private sector in an effort to encourage fellow member states in the Association of Southeast Asian Nations (ASEAN) to build a region-wide database on disaster risk management and climate control. By establishing a shared database, the Philippines hopes to mitigate the ... Read the full article
Re/insurers failing to adjust to climate change, reports University of Waterloo
16th May 2018
The re/insurance industry is putting homeowners at risk by not sufficiently considering risks associated with a changing climate in their underwriting practices, according to a new study by the University of Waterloo. The University’s research, which looked at data from 178 re/insurers, concluded that most companies regard risk to property from ... Read the full article
African farmers receive pay-outs of $1.5mn following drought
14th May 2018
Smallholder farmers under the R4 Rural Resilience Initiative (R4) climate risk management scheme have received pay-outs of US $1.5 million following poor rainfall in Ethiopia, Kenya, Malawi, Senegal, and Zambia. The R4 scheme, which was launched in 2011 by the United Nations World Food Programme (WFP) and Oxfam America, is designed ... Read the full article
California to conduct first climate-related stress test for re/insurers
11th May 2018
The California Department of Insurance (CDI) has announced that it plans to conduct a climate-related financial risk stress test and analysis of re/insurance companies’ investments in fossil-fuels, which it claims will be the most comprehensive test of its kind for the insurance sector, and the first in the U.S. The CDI ... Read the full article
2017’s disaster events show shifting risk landscape, says Chubb’s Greenberg
19th April 2018
Evan Greenberg, Chairman and Chief Executive Officer (CEO) of Chubb, has asserted that the risk landscape is becoming more complex, and that re/insurers must respond to 2017’s costly natural catastrophe events by adjusting their risk-models and doing more to support government programmes. In the Chairman’s letter to shareholders, Greenberg claimed that ... Read the full article
Climate change offers growth opportunities for re/insurers: Moody’s
27th March 2018
Moody’s has suggested that the effects of climate changes may present many opportunities for re/insurers to expand their operations by introducing new products, expanding existing ones, and by closing the protection gap. A recent report by the company predicts that insurance will likely become a more widespread part of comprehensive risk ... Read the full article
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