By 2050, countries worldwide could collectively lose about 10% of total economic value from climate change if temperature increases stay on the current trajectory, according to a recent analysis from the Swiss Re Institute. Global warming's effects are widespread and range in severity, and no nation is immune to the damages that changing weather patterns could cause. In its newly released Climate Economics Index, the Swiss Re Institute projects how climate risks will impact 48 countries, which represent 90% of the world economy, and ranks their overall climate resilience. The five countries identified by the Swiss Re Institute as being the least prepared for the economic shock from climate change are highlighted in the above slideshow. "Climate risk affects every society, every company, and every individual," Thierry Léger, group chief underwriting officer and chairman of Swiss Re Institute, said in a release. "By 2050, the world population will grow to almost 10 billion people, especially in regions most impacted by climate change. So we must act now to mitigate the risks and to reach net-zero targets."

Source: Statista
Léger also added that nature and ecosystem services are under threat, which emphasizes the need for the global community to address climate change and biodiversity loss to create greater sustainability and a more healthy future. Insurers and reinsurers, especially, play a critical role in creating a more sustainable environment by providing risk transfer capacity, risk knowledge, and long-term investments, said the Institute. Further, the insurance industry could use its knowledge of risk to help individuals, families, companies, and communities to mitigate and adapt to climate change. "Only if public and private sectors pull together will the transition to a low-carbon economy be possible," said Swiss Re's Group Chief Economist Jérôme Haegeli in a statement. "Global cooperation to facilitate financial flows to vulnerable economies is essential. We have an opportunity to correct the course now and construct a world that will be greener, more sustainable, and more resilient." Related: |

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Heather A. Turner

Heather A. Turner is the managing editor of ALM's NU Property & Casualty Group. She can be reached at [email protected].

Corporate Risk
Emerging Risk
Weather Risk