Catastrophe bonds and other insurance-linked securities, which powered last year’s highest-returning hedge fund strategy, are built on calculations that can underestimate a new breed of risk stemming from high-frequency events such as wildfires and thunderstorms, according to veteran investors.
Tag: climate risks
How AI, Tech Advances Can Help Insurers with Climate-Related Risks
Global economic losses from natural catastrophes hit $380 billion in 2023, with insured losses at $118 billion, according to a new report from Aon. More than two-thirds (67%) of global insured losses occurred in the United States, and “while no event reached the $10 billion mark, there were at least 37 billion-dollar disasters in total,… Continue reading How AI, Tech Advances Can Help Insurers with Climate-Related Risks
Insurance Leaders Combat Climate Risks Through Innovation, Collaboration
Ellen Mecray, regional climate services director for the National Oceanic and Atmospheric Administration, and Jeff O’Shaughnessy, senior vice president of treaty for HSB, explore strategies to tackle evolving climate risks through data, technology and partnerships.
Democrats on U.S. Senate Budget Committee Open Investigation into Major Insurers
Democrats on the U.S. Senate Budget Committee launched an investigation on Friday into major insurers’ “support” of new fossil fuel projects, on the heels of an industry retreat from areas prone to climate risks.
WTW Introduces New ESG Initiative Around Climate Risk Assessment
WTW today announced the introduction of Climate Risk Solutions for Corporate Risk & Broking (CRB) North America to help clients better manage their climate-related risks.
ISSB Plans to Finalize Rules on Disclosure of Climate-Related Risks in 2023
The International Sustainability Standards Board this year plans to complete two rule proposals that would cover companies’ disclosures of climate-related risks to their business
Climate Change Comes to Insurance: Opinion
Natural disasters have cost the United States more than $600 billion over the past five years. With climate change, those costs are expected to continue increasing. Moving forward, managing and distributing these harms will become increasingly important. Insurance is one tool to do so. Unfortunately, the insurance system is also at risk from climate change.… Continue reading Climate Change Comes to Insurance: Opinion
France to Stress Test Banks, Insurers’ Climate Risks Next Year
France’s financial regulator will subject banks and insurers to climate change stress tests next year, central bank governor Francois Villeroy de Galhau said on Friday. Investors are increasingly putting pressure on companies to make concrete steps to helping implement the U.N.-backed 2015 Paris Agreement to avert catastrophic global warming. In France, banks and insurers –… Continue reading France to Stress Test Banks, Insurers’ Climate Risks Next Year