Report: Climate risks: Strategies for building resilience in a more volatile world

Insurance has a critical role to play in offering protection to households, businesses, and governments, helping them recover financially from the effects of natural catastrophes. However, if the frequency of extreme weather events continues to rise, premiums for disaster insurance will need to increase to reflect the additional risk. This, in turn, will affect the level of protection that individuals and businesses are willing and able to purchase, with potential consequences for the overall functioning of the market. However, the nature of the challenge means that the insurance industry cannot act alone.

This paper outlines a roadmap for achieving a coordinated approach between private and public sectors, emphasizing the need for immediate and sustained action from all sectors: governments, municipalities, communities, businesses, individuals and investors, as well as the insurance industry.