Climate Change: Legal, Insurance & Contracting Practices-Climate Change Legal, Insurance & Contracting Practices Slides 4

Climate Change Legal, Insurance & Contracting Practices Slides 4

Pdf Summary

The presentation "Climate Change and Insurance" by Nancy M. Rigassio of AXA XL (June 14, 2022) focuses on the intersection of climate risks and insurance practices. It underscores that a proposal alone is not a comprehensive plan, emphasizing proper risk assessment and mitigation in insurance coverage.<br /><br />Key topics include the history and components of catastrophe (cat) modeling, which involves evaluating hazards, exposure, and vulnerability to estimate the probability of loss. Hazard is defined as factors increasing the chance a peril (such as fire, windstorm, explosion, or theft) will occur, with risk being a combination of hazard, exposure, and vulnerability.<br /><br />The presentation references significant climate-related events impacting insurance, including Hurricanes Andrew (1992), Katrina (2005), and Sandy, highlighting the damage caused by natural disasters and their implications for insurance risk modeling.<br /><br />It covers challenges in insuring diverse elements like auto losses, fine art, tree damage, water pollution, and cargo—illustrating the complexity of climate-driven claims beyond structural damages.<br /><br />The emphasis is placed on moving from proposals to actionable insurance mitigation plans, including incentive programs, loss mitigation plans, policy exclusions, and the use of high deductibles to manage risks effectively.<br /><br />The presentation integrates industry survey data (2013–17 ACEE Member Rankings) and leverages climate and catastrophe models to improve risk understanding in a changing environment.<br /><br />In summary, the document advocates for proactive, well-structured insurance strategies that account for evolving climate threats, using advanced models and practical mitigation efforts to reduce losses and enhance resilience in underwriting and claims management.

Keywords

Climate Change

Insurance

Risk Assessment

Catastrophe Modeling

Hazard

Exposure

Vulnerability

Natural Disasters

Loss Mitigation

Underwriting