Climate Change Impact On Catastrophe Claims Is Investors Biggest Fear
Thursday, September 23rd, 2021 Risk ManagementThe potential impact from climate change on natural catastrophe P&C insurance and reinsurance claims is the biggest fear of investors in the sector polled by equity analysts at Bank of America.
At their recent conference, the Bank of America (BofA) equity analyst team asked where investors thought climate change related risks would emanate for the P&C re/insurance sector.
Almost 60% cited climate change and how it could make catastrophe claims less predictable as their biggest fear for the space, which mirrors the concerns of many institutional investors in insurance-linked securities (ILS) that we speak with.
As climate change becomes an increasing priority for the investor base that backs the global P&C insurance and reinsurance industry, while recent loss years have seen a heavy burden from perils that are either climate-linked, or thought to be influenced by climate change, the investor base is increasingly keen to understand how re/insurers are and intend to continue managing this risk.
