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.


Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Impending disasters. Insurers are familiar with a host of existing risks, but new disasters still occur that can cause them to scramble for coverage and assess damages. The coronavirus is a perfect example. (Photo: Shutterstock)

With hurricanes, wildfires, tornadoes, floods, volcanic eruptions, earthquakes, cyber warfare and drought already making life difficult for insurers and reinsurers, they hardly need a new type of catastrophe to eat away at their capacity. Yet, every day it seems that some new type of disaster hits, causing insurers to scramble to find coverage and assess damages.

At least once a year there will be a major explosion at some chemical, petroleum or food processing facility that will destroy half a town. If the federal government permits the shipment of liquid natural gas in DOT113 tank cars through urban areas, there may be even more such devastating accidents. Also, at least annually, a large cargo or passenger ship will hit rocks and send the Lutine Bell* at Lloyd’s ringing as the ship rolls on its side spewing oil and pollutants, or a new model aircraft will be shown to have fatal flaws, creating financial problems in the aviation industry.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.