Climate changes are known to be caused by shifts in Earth’s outer and inner forces (e.g., solar magnetic activity and release of energy in the crust). Outcomes of climate changes could be catastrophic, and quite a few indeed have been. Worse! The frequency of catastrophic events is rising, and the resulting damages are deadly and becoming more costly. Indeed, tropical and winter storms, floods, earthquakes, tsunamis and other primary and secondary perils violently remind us that the world is a risky place.
1. How does the underlying uncertainty about climate change and the future of international responses create opportunities and risks for the insurance industry?
2. What areas of insurable risk are available to be developed by insurers?
3. How can insurers address the “extreme tail” risks associated with environmental risk?
Insurers have a clear vision of how enterprise risk management (ERM) will add value to their organizations but face business challenges in progressing toward that goal, according to Towers Watson's Seventh Biennial Global ERM Survey, released in November.more articles