How The Insurance Sector Can Help Combat Climate Change With DX
Citrix News, December 5th, 2022
The insurance sector is intrinsically linked to and impacted by the environment. The more harm that's done to the planet, the more the industry must underwrite. With every major natural disaster, the more the tide of risk rises.
Climate change and increasingly extreme weather events have caused a surge in natural disasters over the past 50 years. In 2018 and 2019, Europe suffered its worst consecutive summer droughts in 250 years - an event likely to repeat itself sooner rather than later.
'In common insurance terms, we would have called these events one-in-250-years events,' McKinsey's FSI advisor Antonio Grimaldi says of the droughts. 'But the changing nature of climate risk means that the likelihood of these events actually repeating in central Europe over the next 50 years will increase sevenfold.'