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The number and frequency of extreme weather events has increased, but insurers are well prepared for a continued gradual rise in such events, and any ratings impact should be limited barring a more dramatic spike, Standard & Poor’s says.

In a report, “Are Insurers Prepared for the Extreme Weather Climate Change May Bring?” S&P says it believes the industry “is well positioned to gradually factor in any costs related to climate change as they emerge,” adding that insurers and reinsurers “have the processes in place to ensure that they can adjust premiums for any gradual increase in weather-related claims.”

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