Climate change in insurance: Turning risk into strategic opportunities

Natural disasters gave rise to economic losses of US$225bn in 2018. However, the insured losses were only US$90bn. Of those natural disasters related to weather1, economic losses were US$215bn and insured losses of $89bn2.There is clearly a significant ‘protection gap’, which is completely unsustainable for consumers, businesses and governments and there is an obvious opportunity for insurers to fill some of that protection gap with innovative insurance products.

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