Aspen Claims Service

Climate Change: Can Insurers Take The Heat?

 Wednesday, July 26, 2017

 Insurance Business

Climate change could lead to a larger market for insurers as more people seek protection from losses — but the higher probability of severe weather events could ultimately prove to be a bane for the industry. For example, a recent study by CoreLogic found that nearly 6.9 million homes along the Atlantic and Gulf coasts are at potential risk of damage from hurricane storm surge, with a total reconstruction cost value of more than $1.5 trillion. A separate study published in the journal Nature Climate Change found that the total economic costs of climate change for urban centres worldwide could be 2.6 times higher when the urban heat island effect is taken into account.