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As climate change progresses, insurers face increasing challenges that will alter the insurability landscape, driving innovation and a more holistic view of risk. Describe the connection between climate change and the increasing frequency of extreme weather events that are contributing to rising uninsurability in the UK. Explain the challenges faced by the insurance industry in providing coverage for high-risk areas impacted by climate change. Summarise the socio-economic consequences of uninsurability for individuals, businesses, and the broader UK economy. List potential policy measures and innovative approaches, such as parametric insurance, that can address gaps in traditional insurance coverage caused by climate change. |
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