Report: Climate Change Hurting The Insurance Industry

In a report, the consultants including Capgemini and Efma, a financial industry body said that, the climate change is hurting the insurance industry and only around 8 percent of the insurers have been preparing adequately for the impact of the climate change.

The report said that, the insured losses from the natural catastrophes have been increased by 250 percent in the past 30 years along with the perils such as wildfires and storms, which are seen as particularly impacted the climate change that has been caused an even faster increase in the insured losses.

The main risk of the insurance industry in the past had been typically from the hurricanes in the United States like Texas and Florida including Seth Rachlin, which is a global insurance industry leader at the Capgemini.

The report also said that, they have seen with the flooding in the continent of Europe and the wildfires in Australia and the wildfires in California and is also becoming a broader geographic issue that is affecting a broader percentage of the earth.

The report said that, more than 30 percent of the insurance companies across the globe has been restricting the investment in the unsustainable companies and more than 20 percent has been restricting the insurance cover to the unsustainable companies. The regions such as California have also seen the insurance industry for pulling out because of the number of the seriousness of the wildfires across the globe.