Climate change, a headache for the insurance sector

• The cost of natural disasters in Spain was 3,600 million in 2021
• Reinsurance fosters climate risk research and modelling

Climate change is one of the greatest challenges facing humanity in the twenty-first century, it has become one of the main concerns in insurance and reinsurance entities. In recent decades, climate change has been accelerating, prompted by the impact of the “greenhouse effect”. This fact causes an increasing wave of extreme events such as earthquakes, cyclones, storms, floods, droughts, etc., and generates irreparable damage to society. All this has a negative impact on the profitability of insurers and reinsurers, which in recent years have seen their profits decrease.

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