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Climate Change And Its Implications For The Insurance Industry, Adam Liska, Eric Holley

Adam Liska Papers

Climate change will lead to a probable increase in the occurrence of weather-related disaster events. These events could lead to declining revenue in the insurance industry, the world’s largest economic sector, with revenue of $4.6 trillion per year, or 7% of the global economy (Mills, 2012). Climatic events have accounted for 72% of global insurance claims and insured losses from 1980 to 2012, totaling $0.97 trillion (Munich Re, 2013). Estimated losses are ~0.5% of global Gross Domestic Product (GDP) and losses are increasing at ~6% a year in real terms (Lomborg, 2010). The United Nations Framework Convention on Climate Change …