IAIS: Insurer systemic risk score declined in 2023 despite climate exposures - Re-Insurance.com
IAIS: Insurer systemic risk score declined in 2023 despite climate exposures | The Insurer
IAIS: Insurer systemic risk score declined in 2023 despite climate exposures
The aggregate systemic risk score of the global insurance sector has seen a slight decline in 2023 compared to the prior year, according to the International Association of Insurance Supervisors’ (IAIS), although the association warned that climate risk continues to manifest.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”