Climate crisis 'pressure pot' prompts insurers to rethink risk strategies

A resident from the Palmiet River informal settlement in Durban digs through rubble after floods devastated parts of the city in April 2022.

While the country used to be a Catastrophic Event -free zone, the scale and magnitude at which disasters have taken place recently means we are now experiencing a dramatic shift in the CAT landscape. In 2023, some experts said the US economy was overexposed to climate risk in the same way that it was overexposed to mortgage risk in 2008, a major cause of the catastrophic financial crisis at the time.

CAT claims will continue to increase volatility and make reinsurance expensive, according to data from Old Mutual Insure. .This structural shift in the reinsurance market has far-reaching implications, demanding a fundamental re-evaluation of how the market approaches risk and pricing.

Risk

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Closed-door meetings, poor record keeping hamper corporate climate lobbyingOPINION | Closed-door meetings, poor record keeping hamper corporate climate lobbying
Source: News24 - 🏆 4. / 80 Read more »

Adoption of Climate Change Bill a 'landmark' in SA's response to climate changeThe NCOP has adopted the bill, paving the way for legal framework to regulate activities that contribute to climate change like coal-fired power stations and emissions.
Source: ewnupdates - 🏆 30. / 53 Read more »

Africa Climate Roundtable to unify African voices on climate resilience and adaptationSouth Africa Today, News source, provides breaking news on South Africa, world, Africa, sport, travel and more.
Source: SATodayNews - 🏆 44. / 51 Read more »

Warming climate threatens to worsen air quality in already polluted KathmanduSouth Africa Today, News source, provides breaking news on South Africa, world, Africa, sport, travel and more.
Source: SATodayNews - 🏆 44. / 51 Read more »

Half of all copper mining is at drought risk with climate changeAt least 40% of global copper supply is produced from no more than three countries.
Source: Moneyweb - 🏆 5. / 77 Read more »

Political parties offer platitudes as climate crisis deepens and water woes worsenEnvironmentalists are urging strategic voting and active citizenship to stave off the collapse of natural systems.
Source: dailymaverick - 🏆 3. / 84 Read more »