Research on the Impact of Climate Change on Insurance Companies

Research Article
Open access

Research on the Impact of Climate Change on Insurance Companies

Qining Yang 1*
  • 1 University of Manchester    
  • *corresponding author qining.yang@student.manchester.ac.uk
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/9/20230393
AEMPS Vol.9
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-45-4
ISBN (Online): 978-1-915371-46-1

Abstract

The global climate is changing with more and more extreme weather, including typhoons, extreme temperatures and other disasters. Climate change has an extraordinary impact on the insurance industry. However, according to research, a third of insurers are not paying enough attention to the impacts of climate change. This paper analyzes and demonstrates the impact of weather changes from two parts of non-life insurance and life insurance through cases. Taking the typhoon as the cut-in perspective, the impact on the climate is analyzed from three aspects: strong wind, storm surge and heavy rain. Additionally, this article offers some advice to insurers on how to benefit from global events. The findings suggest that insurers should recalculate all catastrophe risks and rebuild risk models. Catastrophe bonds can also help businesses raise capital. Insurers need to recognize how far-reaching climate change will affect the insurance sector, and how risks present opportunities.

Keywords:

climate change, catastrophe risk, typhoon

Yang,Q. (2023). Research on the Impact of Climate Change on Insurance Companies. Advances in Economics, Management and Political Sciences,9,264-269.
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References

[1]. NRDC Homepage, https://www.nrdc.org, last accessed 2022/08/31.

[2]. Authority, Prudential Regulation. The impact of climate change on the UK insurance sector. A Climate Change Adaptation Report (2015).

[3]. DELOITTE Homepage, https://www2.deloitte.com, last accessed 2022/08/17

[4]. Grimaldi, Antonio, et al. "Climate Change and P&C Insurance: The Threat and Opportunity." McKinsey & Company, Our Insights, November 19 (2020).

[5]. FINANCIALNEWS Homepage, https://www.financialnews.com.cn, last accessed 2022/08/09.

[6]. Strobl, Eric. "The impact of typhoons on economic activity in the Philippines: Evidence from nightlight intensity." Asian Development Bank Economics Working Paper Series 589 (2019).

[7]. Zhang Xueren. Research on the pricing of typhoon catastrophe risk bonds. Doctoral dissertation, Jiangxi University of Finance and Economics (2014).

[8]. Zhou, Q.X.: Advances in research on the impact of climate change on environment and health. Journal of Meteorology and environment 22(1), 38-44 (2006).

[9]. Zhang, L.Y., Zhang, Z., Hou, B.: Mortality risk of heat wave between different groups and cities and the corresponding insurance ratemaking. Climate Change Research 14(5), 475-484 (2018).

[10]. WTW, Homepage, https://www.wtwco.com, last accessed 2022/08/11.

[11]. Cummins, J. D.: Cat bonds and other risk‐linked securities: state of the market and recent developments. Risk management and insurance review 11(1), 23-47 (2008).

Cite this article

Yang,Q. (2023). Research on the Impact of Climate Change on Insurance Companies. Advances in Economics, Management and Political Sciences,9,264-269.

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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-45-4(Print) / 978-1-915371-46-1(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.9
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. NRDC Homepage, https://www.nrdc.org, last accessed 2022/08/31.

[2]. Authority, Prudential Regulation. The impact of climate change on the UK insurance sector. A Climate Change Adaptation Report (2015).

[3]. DELOITTE Homepage, https://www2.deloitte.com, last accessed 2022/08/17

[4]. Grimaldi, Antonio, et al. "Climate Change and P&C Insurance: The Threat and Opportunity." McKinsey & Company, Our Insights, November 19 (2020).

[5]. FINANCIALNEWS Homepage, https://www.financialnews.com.cn, last accessed 2022/08/09.

[6]. Strobl, Eric. "The impact of typhoons on economic activity in the Philippines: Evidence from nightlight intensity." Asian Development Bank Economics Working Paper Series 589 (2019).

[7]. Zhang Xueren. Research on the pricing of typhoon catastrophe risk bonds. Doctoral dissertation, Jiangxi University of Finance and Economics (2014).

[8]. Zhou, Q.X.: Advances in research on the impact of climate change on environment and health. Journal of Meteorology and environment 22(1), 38-44 (2006).

[9]. Zhang, L.Y., Zhang, Z., Hou, B.: Mortality risk of heat wave between different groups and cities and the corresponding insurance ratemaking. Climate Change Research 14(5), 475-484 (2018).

[10]. WTW, Homepage, https://www.wtwco.com, last accessed 2022/08/11.

[11]. Cummins, J. D.: Cat bonds and other risk‐linked securities: state of the market and recent developments. Risk management and insurance review 11(1), 23-47 (2008).

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