What does climate change mean for health and life insurance?

The Geneva Association, which studies key risk areas likely to impact the insurance sector, and the Wellcome charitable foundation have published a comprehensive report examining climate change and the risks it poses to life and health insurers – a subject less well understood than the corresponding exposure in the property and casualty sector.

P&C insurers are grappling with rising claims due to damage inflicted by climate-induced events. However, as the report highlights, the impact of climate change also impinges on human health through acute and chronic risks – from respiratory illnesses triggered by wildfires to increased risk of illness from insects carrying diseases.

The report highlights that although health and life insurers have not yet faced the significant impacts of these risks, forecasts point to a future where these effects will intensify, requiring innovative approaches to risk management. insurance. The recommendations particularly emphasize the prioritization of preventive measures and the adoption of parametric insurance models.

Jad Ariss, director general of the Geneva Association, stressed the importance of addressing the human element of climate change, noting: “We cannot talk about the effects of climate change without talking about the major damage caused to human beings – to their physical and mental health. .” Ariss highlighted the multifaceted nature of climate impacts, highlighting the need to mitigate risks to remain insurable.

Similarly, Adrita Bhattacharya-Craven, lead author of the report and director of health and demography at the Geneva Association, highlighted the growing challenges posed by climate change in terms of mortality and morbidity. She highlighted the importance of the insurance industry working together to effectively address the health risks associated with climate change.

Wellcome’s Head of Climate Impacts and Adaptation, Madeleine Thomson, also commented on the report, citing the unique position of the insurance industry in tackling this issue. Thomson called for more research into the health impacts of climate change, to enable the development of appropriate insurance products, particularly for vulnerable populations in high-risk countries.

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