Climate Risk: A Threat to Business

Excerpt from the August 2024 Conning Commentary

Climate Risk: A Threat to Business
The issue of assessing and managing climate change risk, both physical and transitional, has become increasingly important in the insurance industry. Potential impacts of climate change range from extreme weather events to changes in ecosystems and human livelihoods. The growing threats of extreme weather and climate tipping points create risks to financial markets and are causing increasing concern about their impact on the insurance industry. In addition to the physical risks associated with climate change, recent SEC filings have changed the disclosure rules for businesses, leading to greater uncertainty and concerns surrounding transitional climate risk.

With that as the backdrop, Conning’s Insurance Research and Risk Solutions groups have partnered to conduct a survey of insurers to gauge the sentiments of industry executives on climate risk.
Excerpt from the August 2024 Conning Commentary