A National Oceanic and Atmospheric Administration report indicates that 2020 is now tied with 2016 as the hottest year on record. Additionally, the past seven years are now the warmest since scientists began measuring temperatures in the 19th century, Bloomberg reported.

Source: Statista

If temperature increases continue and countries fail to meet net-zero emission targets and goals set by the Paris Agreement, the world could lose about 10% of its total economic value, according to an analysis published in the Swiss Re Institute's Climate Economics Index. The analysis projected global GDP losses of different climate change scenarios: |

• 18% loss if no mitigating actions are taken (3.2°C/37.7°F increase)
• 14% loss if some mitigating actions are taken (2.6°C/36.6°F increase)
• 11% loss if further mitigating actions are taken (2°C/25.6°F increase)
• 4% loss if Paris Agreement targets are met (below 2°C/25.6°F increase)

"Climate change is a systemic risk and can only be addressed globally. So far, too little is being done," Jérôme Haegeli, group chief economist of Swiss Re Group, said in a release. "Transparency and disclosure of embedded net-zero efforts by governments and the private sector alike are crucial. Only if public and private sectors pull together will the transition to a low-carbon economy be possible. 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." In the Climate Economics Index, the Swiss Re Institute stress-tests how climate risks will impact 48 countries representing 90% of the world economy. The above slideshow features the five countries the Swiss Re Institute identifies as the most prepared for the economic shock from climate change. Related: |

• Are insurers leading the fight against climate change?
• Applying the lessons from COVID-19 to climate change
• How insurance is being called to lead in the climate crisis