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Insurers must be careful not to underestimate the true threat of climate change. Because its effects are systemic, climate risk is likely to stress local economies and-more grimly-cause market failures that affect both consumers and insurers. More frequent catastrophic events, in combination with the need to meet evolving regulatory requirements, will inevitably threaten business models-and make insuring some risk unaffordable for customers or unfeasible for insurers. Customers, regulators and the wider society that the industry serves are therefore likely to demand that insurance solutions go beyond traditional risk transfer to explicitly address risk mitigation. |
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Calling all BPA analysts! | ||
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