What The 6th International Climate Report Says To Insurers

The Intergovernmental Panel on Climate Change (IPCC) has been publishing assessment reports describing expected climate change impacts and risks since 1990 and has warned of the growing risks from climate change in each report.

With input from over 670 leading climate scientists from around the world, the IPPC Working Group II on Impacts, Adaptation and Vulnerability published on February 28, 2022 part of the 6th Assessment Report representing the scientific consensus on pending climate change impacts and risks.

The report includes several key insights for insurers:

Severe change is already baked in. Even if global warming is limited to 1.5 degrees Celsius – the goal of the Paris Climate Accords – increases in multiple climate hazards, such as flooding, extreme weather and death from heat exposure, are unavoidable.

Thus far, the world has experienced approximately 1.1 degrees C average warming since the pre-industrial era. In an August 2021 report, the IPCC predicted that the world is on track to reach 1.5 degrees C of warming by the early 2030s. Various assessments estimate that the world will achieve approximately 3 degrees C of warming by 2100.