Climate Change: Implications for the (Re) Insurance Industries

The impacts of climate change on the financial services industry, including insurance, are expected to be significant, but as yet its particular effects and the preparedness of the industry to respond are unknown. This article addresses primarily the role of the insurance industry, narrowing it down to reinsurance, in climate change adaptation. However, two other climate change response strategies – mitigation and communication – cannot be left out and the possible contributions of the industry to these strategies are considered. More in-depth research is needed in order to assess the extent to which the regulation of international trade in different financial services could foster adaptation of the industry to climate change. We conclude with the international framework perspective and argue that, in order to find a sound adaptation, solutions should be tailored to the needs, capacities and specificities of the region or country with the help of the (re)insurance industry expertise in risk assessment and risk management.