S&P Global Market Intelligence Has Released a Report Exploring How Climate Change and Extreme weather are Reshaping the Insurance Industry
S&P Global Market Intelligence has released a report examining how climate change and extreme weather are transforming the insurance industry. The report highlights how secondary perils like floods, fires, and severe convective storms now constitute a larger portion of catastrophe losses compared to traditional peak perils like tropical cyclones and earthquakes.
The report reveals that secondary perils contributed to the global reinsurance industry failing to earn its cost of capital for five out of six years between 2017 and 2022. A notable example is Hurricane Helene's unexpected devastation in the Appalachian Mountains rather than coastal regions. The report also notes significant flooding events in Europe during 2024, with data suggesting northern Germany will face increased pluvial flooding risks by the 2050s.
S&P Global Market Intelligence ha pubblicato un rapporto che esamina come i cambiamenti climatici e le condizioni meteorologiche estreme stiano trasformando l'industria assicurativa. Il rapporto evidenzia come i pericoli secondari come alluvioni, incendi e forti tempeste convettive ora rappresentino una porzione maggiore delle perdite da catastrofi rispetto ai pericoli principali tradizionali come i cicloni tropicali e i terremoti.
Il rapporto rivela che i pericoli secondari hanno contribuito al fallimento dell'industria globale della riassicurazione nel guadagnare il costo del capitale per cinque degli sei anni tra il 2017 e il 2022. Un esempio notevole è la devastazione inaspettata dell'uragano Helene nelle Montagne Appalache, piuttosto che nelle regioni costiere. Il rapporto nota anche eventi significativi di alluvioni in Europa nel 2024, con dati che suggeriscono che la Germania settentrionale affronterà un aumento dei rischi di alluvioni pluviali entro il 2050.
S&P Global Market Intelligence ha publicado un informe que examina cómo el cambio climático y el clima extremo están transformando la industria de seguros. El informe destaca cómo los riesgos secundarios como inundaciones, incendios y tormentas convectivas severas ahora constituyen una porción mayor de las pérdidas por catástrofes en comparación con los peligros principales tradicionales como los ciclones tropicales y los terremotos.
El informe revela que los peligros secundarios contribuyeron a que la industria global de reaseguro no lograra obtener su costo de capital en cinco de los seis años entre 2017 y 2022. Un ejemplo notable es la devastación inesperada del huracán Helene en las montañas Apalaches, en lugar de en las regiones costeras. El informe también señala eventos significativos de inundaciones en Europa durante 2024, con datos que sugieren que el norte de Alemania enfrentará un aumento en los riesgos de inundaciones pluviales para la década de 2050.
S&P Global Market Intelligence는 기후 변화와 극단적인 날씨가 보험 산업을 어떻게 변화시키고 있는지를 조사한 보고서를 발표했습니다. 이 보고서는 홍수, 화재 및 심각한 대류성 폭풍과 같은 이차 위험이 더 이상 전통적인 대규모 재해인 열대 사이클론 및 지진에 비해 재해 손실의 더 큰 부분을 차지하고 있음을 강조합니다.
보고서는 이차 위험이 2017년부터 2022년까지 6년 중 5년 동안 글로벌 재보험 산업이 자본 비용을 충당하지 못하게 했다는 사실을 밝힙니다. 주목할 만한 예는 허리케인 헬렌이 해안 지역이 아닌 애팔래치아 산맥을 예상하지 못한 파괴입니다. 보고서는 또한 2024년 유럽의 중대한 홍수 사건을 언급하며, 데이터에 따르면 독일 북부는 2050년대에 강수 홍수 위험이 증가할 것이라고 합니다.
S&P Global Market Intelligence a publié un rapport examinant comment le changement climatique et les conditions météorologiques extrêmes transforment l'industrie de l'assurance. Le rapport souligne comment les dangers secondaires comme les inondations, les incendies et les tempêtes convectives sévères constituent désormais une plus grande part des pertes en cas de catastrophe par rapport aux dangers majeurs traditionnels comme les cyclones tropicaux et les tremblements de terre.
Le rapport révèle que les dangers secondaires ont contribué à l'incapacité de l'industrie mondiale de la réassurance à couvrir ses coûts du capital pendant cinq des six années entre 2017 et 2022. Un exemple notable est la dévastation inattendue de l'ouragan Helene dans les Appalaches plutôt que dans les régions côtières. Le rapport note également des événements d'inondation significatifs en Europe en 2024, avec des données suggérant que le nord de l'Allemagne fera face à une augmentation des risques d'inondations pluviales d'ici les années 2050.
S&P Global Market Intelligence hat einen Bericht veröffentlicht, der untersucht, wie der Klimawandel und extreme Wetterereignisse die Versicherungsbranche transformieren. Der Bericht hebt hervor, dass sekundäre Risiken wie Überschwemmungen, Brände und schwere konvektive Stürme nun einen größeren Anteil der Katastrophenverluste im Vergleich zu traditionellen Spitzengefahren wie tropischen Zyklonen und Erdbeben ausmachen.
Der Bericht zeigt, dass sekundäre Risiken dazu beigetragen haben, dass die globale Rückversicherungsbranche in fünf von sechs Jahren zwischen 2017 und 2022 ihre Kapitalkosten nicht decken konnte. Ein bemerkenswertes Beispiel ist die unerwartete Verwüstung durch den Hurrikan Helene in den Appalachen statt in den Küstenregionen. Der Bericht vermerkt auch bedeutende Überschwemmungsereignisse in Europa im Jahr 2024, mit Daten, die darauf hinweisen, dass Norddeutschland in den 2050er Jahren mit erhöhten Risiken von Regenüberschwemmungen rechnen muss.
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In this new report, S&P Global Market Intelligence's climate, insurance and industry experts highlight how secondary perils like floods, fires and severe convective storms — as distinct from the insurance industry's peak perils of tropical cyclones and earthquakes — are now making up a larger portion of catastrophe losses in recent years. Insurers and reinsurers are used to picking up the tab for natural catastrophes, but the increasing frequency and severity of mid-sized events and hurricanes hitting previously unaffected areas has led to an overhaul of the industry's approach to those payouts.
"The insurance industry has often acted as an early warning system for individuals and industries looking to understand and mitigate future risk. With climate change expected to increase the severity and frequency of natural catastrophes, understanding this altered risk environment is paramount. Insurers have been beating the drum on a variety of climate change risks for many years so their current focus on extreme weather should be a cross-industry concern," said Raymond Barrett, lead author of the report at S&P Global Market Intelligence.
Key highlights from the report include:
- Secondary perils such as floods and fires played a large role in the global reinsurance industry failing to earn its cost of capital for five of the six years between 2017 and 2022. The knock-on effect of this new reality has insurers paying more for cover to the reinsurance industry and retaining more risk on their own books.
- One striking example of how the risk landscape has changed is the damage wrought by Hurricane Helene in
North Carolina . Hurricanes generally cause the most destruction in coastal regions but in this case the Appalachian Mountains saw some of the most severe devastation from the storm. However, a significant portion of the economic losses caused by Helene are not insured, as flooding falls outside the terms and conditions of most insurance policies in theU.S. - It has been a costly 2024 so far for European-focused insurers after two large floods hit the central and eastern parts of the continent. S&P Global Sustainable1 data shows that the northernmost part of
Germany will be particularly susceptible to increased pluvial flooding in the 2050s. - These findings highlight the necessity for robust infrastructure design and prioritizing flood-resistant construction. As drought, water stress and localized flooding risks intensify, strategic planning and proactive risk management will be vital to safeguard against evolving climate challenges.
To request a copy of the Evolving Natural Catastrophe Risks report please contact press.mi@spglobal.com
S&P Global Market Intelligence's opinions, quotes, and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendation to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.
About S&P Global Market Intelligence
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S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.
Media Contact
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S&P Global Market Intelligence
+44 207-176-0495
sabrina.mayeen@spglobal.com or press.mi@spglobal.com
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SOURCE S&P Global Market Intelligence
FAQ
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