Insuring Against Climate Change: How Traditional Insurers and
Start-Up Companies are Implementing Innovative Technologies to
Address Climate Risks
Over the last decade, there has been a global increase in the
focus on climate change and the risks and dangers associated with
it. And for good reason. Damage from climate-related disasters was
in the billions of dollars in 2019 alone. California wildfires
caused $25 billion in property damage, while Typhoon Hagibis in
Japan cost an estimated $15 billion. Other extreme weather events,
including rampant brush fires in Australia, widespread droughts in
East Africa and severe flooding in South Asia, have had devastating
consequences.
Insurers seeking to underwrite weather-related risks face
growing challenges. While the availability of insurance can help
mitigate some of the impacts of climatic shifts, insurers stand to
lose billions of dollars from catastrophic weather events. As a
result, some insurers have had to
