Insurance

Climate change is beginning to increase risks for insurance companies. As extreme weather events increase in frequency and magnitude, insurers must consider evaluating direct costs, like property damage and business interruptions from a variety of weather events, such as hurricanes or floods for example. Accurately quantifying damage is important for insurers to adjust risk models, set premiums, and ensure resilience as climate change-induced risks are on the come up. Insurers and governments can collaborate to develop adaptive insurance strategies that can deal with challenges related to climate change events, like changing precipitation patterns, increased sea levels, and more heatwaves.