Airmic has carried out a survey of its members on climate risk and parametric insurance cover and has found that climate risk is still not getting the priority it needs among the majority of risk professionals.
When it does, according to Airmic, their concern is primarily around managing the short-term impacts of increasingly and severe weather events such as flooding and tropical cyclones, rather than the more deleterious long term effects of climate change.
Other headline findings include:
More than three-quarters of Airmics respondents do not consider that traditional property damage & business interruption (PDBI) policies adequately cover natural perils, largely because of the restricted or excluded coverage of those policies.
There is much scope for parametric insurance cover to play a role – nearly two-thirds of Airmic respondents have considered but not purchased parametric insurance cover.