Estimates suggest that by 2050, 350 million people in the world’s megacities will be impacted by heat stress. (Photo: Onur/Adobe Stock)

The escalating environmental and climate crisis poses increased risks to major cities and businesses globally. In less than 30 years, we will be forced to re-evaluate how we live and work. Businesses are already facing physical risks posed by climate change, but additional risks could include harsher regulations and mounting legal liabilities, as well as reputational damage.

Amidst these environmental risks, the insurance industry must be prepared for the challenges that will ensue. Bill Churney, president of AIR Worldwide, told that insurers should make sure “they are prepared for unprecedented extremes that climate change may bring or influence in the near and not-so-near future,” adding that they should also “understand how the catastrophe models they use are built and how they are accounting for climate change.”

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