Level of insurer preparedness to respond to the potential impacts of climate-related risks And that could very well be the starting point of increased climate risk regulations. There’s no doubt that more information-through more effective disclosure-would help regulators assess the effectiveness of insurer actions to mitigate insurance risk due to climate change. With losses mounting, insurers can no longer avoid or postpone addressing the impact of changing climate on their underwriting, pricing, and investment decisions, as well as their bottom lines. US state regulators and lawmakers are watching the implications of climate-related risks very carefully and are becoming increasingly concerned about the insurance industry’s response to climate change. More than half of the regulators surveyed also indicated that climate change was likely to have a high impact or an extremely high impact on coverage availability and underwriting assumptions.A majority of US state insurance regulators expect all types of insurance companies’ climate change risks to increase over the medium to long term-including physical risks, liability risks, and transition risks.In fact, the Insurance Regulator State of Climate Risks Survey, conducted by the Deloitte Center for Financial Services, found: One federal regulator in the US went so far as to suggest that the potential damage from climate change could end up being as severe as the fallout from the mortgage crisis triggering the 2008 financial crisis.

The escalating frequency and severity of extreme weather-related events-from wildfires in the US, to record heat waves in Europe, to floods in Japan-have shone a brighter regulatory spotlight on insurance risk and climate change.

Change weather fallout 4