Billions in climate related losses are pushing up insurance costs

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🗞️ Driving the news: Climate change has caused over €550 billion in weather-related insurance losses over two decades, with escalating risks driving up insurance premiums, a report by Insure Our Future reveals
• Insurers are accused of ignoring how greenhouse gas emissions amplify losses and of continuing to underwrite fossil fuel projects
• Vulnerable communities are increasingly unable to afford coverage as costs soar and insurers retreat from high-risk areas

🔭 The context: The report highlights that 38% of weather-related losses now stem from climate change, up from 31% a decade ago
• Companies like Allianz, AXA, and Zurich have seen climate-related losses outpace premiums from fossil fuel projects, yet fossil fuels still dominate over renewables in the insurance market
• Voluntary corporate climate actions have largely stalled, raising calls for regulatory intervention

🌍 Why it matters for the planet: Insurance is a critical tool for climate resilience, yet the industry’s ties to fossil fuel expansion undermine global decarbonization efforts
• A lack of affordable insurance leaves communities exposed to escalating climate risks, hindering social and economic stability

⏭️ What's next: Experts and activists urge insurers to phase out fossil fuel underwriting, expand renewable energy coverage, and align with 1.5°C climate goals
• Regulatory intervention may be necessary to enforce climate risk management as voluntary actions falter

💬 One quote: “Unless we cut emissions sharply this decade, climate damages will grow exponentially and could overwhelm both insurers and economies” – Professor Ilan Noy

📈 One stat: In 2024, Europe saw €128 billion in natural disaster losses, its second-highest year for insured flooding losses

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