Taking The Market's Temperature On Coverage For Climate Change-Related Property Damage

Temperatures in Arizona this week reached over 110 degrees Fahrenheit. The water temperature in the Florida Keys was reported to reach sauna-like levels, threatening the life of habitat-sustaining coral. Atmospheric conditions are routinely blamed for violent storms and for wildfires that darken the skies.

As average global temperatures continue to rise, catastrophic weather events are occurring with greater frequency and intensity. According to Aon, there were 421 major natural disasters worldwide in 2022, resulting in $132 billion in insured losses (including approximately $99 billion in the United States). At the same time, historic risk models are proving unable to account for the increasingly volatile weather patterns, presenting challenges for insurers to accurately assess their exposure.