Insurers are experiencing that the world may soon become unwavering

The best insurers are afraid Climate crisis In the near future there may be industry solutions that effectively threaten to make entire regions around the world.

Gunther Tallinger, Member of the Board In AllyOne of the largest insurers in the world recently outlined how the world quickly approaches the temperature level, if insurers will no longer be able to offer cover services, such as mortgage and investment.

In LinkedIn pillar Published at the end of March, the talinger started a case for rapid decarbonization, pointing out that whole assets “humiliate in real time” when extreme weather events take their value. Perhaps most surprisingly, he warned that the climatic crisis appears to be on the way to the destruction of capitalism.

Insurance that is considered Because the invisible lubricant of the global economy plays a unique role in resolving the risk -related climates. As professional risks executives, insurers regularly allow investors to take up calculating risks, protecting people and businesses from financial losses.

Tallinger, which is responsible for managing investments and sustainability in Allianz, said CNBC that about two -thirds of economic losses from natural disasters are currently not insured, which testifies to the “major public problem”.

The so -called gap in defense means that the financial burden of these disasters often falls on people, businesses and governments, not insurance firms.

“If this volume is just growing even more, we just have a public situation that is no longer genuine because it is too big a risk that is no longer covered,” Talinger CNBC said by video call.

“The logic is not ours or mine. No, not at all.

The warning occurs at a time when the world goes to fever on 2.6-3.1 degrees Celsius in this century, according to Organization of the United NationsThe level that would cause “catastrophic” consequences for the planet.

Scientists have repeatedly warned This average global temperature should be stored below 1.5 degrees Celsius to avoid the worst thing in the climatic crisis.

This threshold is recognized As a crucial long -term goal, because the so -called turning points become more likely than this. Break ups can lead to dramatic shifts either potentially irreversible changes For some largest land systems.

“We can really talk about adaptation. How to build our infrastructure, our houses, our streets, our pipelines, our networks so that they can withstand certain forms of the weather. This is what we can do with a very, very simple economic case,” Talinger said.

Allianz estimates that the cost of economic losses from natural disasters is usually approximately 10 times higher than the cost of adaptation, noting that it provides an obvious economic incentive for politicians for preventive measures.

“If we continue, with the policy we pursue there, we are definitely on the way 2.7 degrees or 3 degrees where adaptation is simply not possible.

It is not only a talinger of the Ayanets who fears the worst. Insurance Group TsurichFifth largest insurers of Europe, – Note In April, together with research work, which assesses the resistance to the climate, which the worldview looks “anxious”.

The Swiss Inser brought Los -egeles Fire At the beginning of the year, as a vivid reminder that even the richest economies in the world are not ready to enhance climate risks.

Zurich also found that over the past three decades, world insurance losses have grown much faster than the global economy.

Based on the Zurich inflation that average insurance losses increased by 5.9% a year from 1994 to 2023, while the global gross domestic product (GDP) increased by 2.7% annually over the same period. The data obtained suggest that insurance losses are more than double compared to global growth over the last 30 years.

“If insurance losses continue to rise at such a speed, the climate risks should increase to display additional risk,” Zurich’s insurance group – – Note in paper. “This, in turn, will affect the level of protection that people and businesses are ready and able to acquire, with potential consequences for the overall functioning of the market.”

For insurers and reinsors increase the severity and frequency of extreme weather events coincided Astronomical growth On the skiing market.

For the first time created in the 1990s, the so-called CAT bonds refer to the type of financial tool designed to raise money for insurers in the event of a natural disaster, such as a hurricane or earthquake.

The Swiss Re, the leading world reinser, said in a recent report that the Cat Bond market has expanded by 75% since the end of 2020, noting that the trend showing little signs.

For the talleniger, however, the climatic crisis threatens to push long -standing relationships between greater risk and more business for insurers to break. At some stage, this may have consequences for financial markets, he said.

Steve Evans, the owner and editor -in -chief of the specialized ARTEMIS.BM data provider, warned that the insurance industry would not simply continue the main blow of economic losses from natural disasters.

“If the stability does not increase and the defense is not created, the more disasters affect the regions and the more expensive their insurance.

“When the losses continue to increase, it just becomes uneccrowned for insurers and reinsters and even in capital markets. So, something needs to be done to really gather both stability and protection.”