Panic In The Insurance Sector!

Insurer of insurers: “No action on climate is not an option”

Photo by Sean Benesh on Unsplash

“The world stands to lose close to 10% of total economic value by mid-century if climate change stays on the currently-anticipated trajectory, and the Paris Agreement and 2050 net-zero emissions targets are not met.”

When I make statements like that, my friends and family, tired of my doomism and incessant tirades about the ongoing climate calamity, the oligarchy, and our impending doom, roll their eyes, pop another beer and politely change the subject.

When the second-largest reinsurance company in the world, almost twice the size of Warren Buffet’s Berkshire Hathaway quantifies the coming disaster in these terms, other insurance companies and banks listen, although they may pretend to roll their callous eyes publicly as well.

Source: SwissRe Institute

Described as “insurance company for insurance companies” by the Reinsurance Association of America, reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit their total loss in case of disaster. In this case, it should read disasters (plural) as the…