A recent report by Conning titled “Climate Risk: An Imminent Threat to Business” highlights that 91% of insurance executives view climate change as a significant threat to their operations. The report indicates that many executives are planning investments in tools and practices to improve climate risk assessments, particularly among smaller insurers, which make up a substantial portion of the market. This concern is compounded by the financial losses reported in the property insurance sector, which experienced ongoing underwriting losses from 2017 to 2023. The study underscores the critical need for the insurance industry to address both physical and transitional climate risks to ensure sustainable business practices moving forward.
