Friday, April 20, 2018

Disaster coverage could become too expensive

With natural disasters becoming more frequent and destructive, insuring against catastrophe may become too expensive for households and companies, according to Munich Re.

The industry needs to find solutions to this possibility if it wants to survive climate change, which has the potential of causing damage that may be impossible to model.

Ernst Rauch, the head of the Corporate Climate Centre at Munich Re, said there will be a situation sometime in the future in which people can no longer afford to buy insurance against natural catastrophes.

Munich Re reported losses of about US$1.63 billion from hurricanes Harvey, Irma, and Maria.

Rauch told Bloomberg in an interview that those who deny that climate change is happening will have a bigger problem in the future.

 

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