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Instant Insights / The impact of climate change on P&C insurance

Scientists have built consensus around the probability that more powerful floods, fires, droughts and storms will occur with higher frequency as the Earth gets hotter.

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A large part of today's natural disaster exposures has to do with shifts in weather patterns, resulting in increased frequency and severity of events. (Photo: Bloomberg) A large part of today’s natural disaster exposures has to do with shifts in weather patterns, resulting in increased frequency and severity of events. (Photo: Bloomberg)

My mother raised me with the notion that it’s better to be safe than sorry. While the insurance industry may live by that risk management credo, it doesn’t appear to be the prevailing attitude among millions of policyholders when it comes to protecting properties against hurricanes, floods and wildfires.

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