A New Risk - Climate Reinsurance
Quote from Ndubuisi Ekekwe on October 28, 2019, 8:16 AMThe world is changing in all ways, I must note. Climate change is causing major concerns for reinsurers such as Swiss Re—not as a future challenge but as a present financial shock. In the last two years, Swiss Re has had to pay out far more than its models had predicted. So how is it dealing with the situation? For one thing, it's pulling back from insuring or investing in coal-related companies, notes Fortune.
Simply, if climate change is not managed, most models in current business systems will fail. This is a massive issue the world is not giving the urgency it deserves.
The world is changing in all ways, I must note. Climate change is causing major concerns for reinsurers such as Swiss Re—not as a future challenge but as a present financial shock. In the last two years, Swiss Re has had to pay out far more than its models had predicted. So how is it dealing with the situation? For one thing, it's pulling back from insuring or investing in coal-related companies, notes Fortune.
Simply, if climate change is not managed, most models in current business systems will fail. This is a massive issue the world is not giving the urgency it deserves.