Climate Change Drives $600b in Insured Losses over 20 Years

In a startling revelation, Insure Our Future’s report indicates that climate change has been responsible for a staggering $600 billion in insured weather-related losses across the globe over the past two decades. This figure represents more than a third of all such losses, painting a dire picture of the impact of a changing climate on the insurance industry.

The report further shows that over the last ten years, climate-attributed losses have seen a significant increase, growing from 31% to 38% of total insured weather losses. What’s more, the annual growth rate of these climate-related losses, at 6.5%, has outstripped the growth rate of total losses, which stands at 4.9%. This trend not only reflects the intensifying effects of climate change but also poses a major challenge for insurers.

An analysis of 28 leading global insurers has brought to light a concerning fact. Their climate-related losses, estimated at a hefty $10.6 billion, nearly matched the $11.3 billion in premiums they earned from fossil fuel clients in 2023. The report titled “Within Our Power” also spotlights the insurers’ practice of relying on policyholders to bear the brunt of these mounting costs while still underwriting fossil fuel projects that are major contributors to climate risks. This situation calls into question the long-term viability and ethical stance of insurers in the face of a global climate crisis.

Related topics

• Philippines to Modernise Insurance Data Privacy Practices
• Asia Shies Away from Savings to Protection Products
• Global Insurance Brokerage Sector to Reach $628.3b by 2032