Insurers are worried the world could soon become uninsurable

The best insurance companies are afraid that the climate crisis may soon go through industrial solutions and effectively threaten all regions in the world to uninsured.

Günther Thallinger, Board Member AllianzOne of the largest insurers in the world has recently summarized how the world is now approaching temperature levels that insurers cannot provide for financial services such as mortgages and investments.

In a LinkedIn post Thallinger, which was published in late March, filed a fast carbohyditation case and said that all asset classes were “real -time humiliating” as excessive weather incidents progressed negatively. Perhaps the most striking way, warned that the worsening climate crisis is on the way to destroy capitalism.

Insurance, that deemed As an invisible lubricant of the global economy, it plays a unique role in addressing climate risks. As professional risk managers, insurance companies protect individuals and businesses against financial losses by allowing investors to undertake routine risks.

Thallinger, who is responsible for investment and sustainability in Allianz, said to CNBC that about two -thirds of economic losses caused by natural disasters are now uninsured and show a “big social problem”.

The protection gap means that the financial burden of these disasters usually falls to individuals, businesses and governments instead of insurance companies.

“If this skin grows further, we have a social situation that no longer endure, because it is too much risk that is no longer covered.”

“Logic is not ours or mine. No, not, not. In fact, there are many people who talk about how you can’t insure certain assets. It is very difficult to deal with these assets as an investor.”

The warning comes at a time when the world has a course for a temperature increase up to 2.6-3.1 degrees in this century, United NationsA level that will trigger the “disaster” results for the planet.

Scientists have repeatedly warned that global average temperatures should be kept below 1.5 degrees Celsius to avoid the worst of the climate crisis.

This threshold is considered as an important long -term target, because the so -called overturning points become more likely beyond this level. The overturning points can lead to dramatic changes or Potentially irreversible changes To some of the world’s largest systems.

“We can really talk about adaptation. We can really talk about adaptation. How to build our infrastructure, our homes, our streets, our pipelines, our grids to withstand some forms of certain weather events. This is something we can do with a very easy economic situation behind it.”

Allianz predicted that the cost of economic losses from natural disasters is typically about 10 times higher than the cost of adaptation, and that it provides a clear economic incentives for policy makers to invest in preventive measures.

“However, if we continue with the policies we have outside, we are on a 2,7 degree or 3 degree road where adaptation is no longer being done. This is exactly. This is exactly the three -meter sea level. This is not only done,” Thallinger said.

It’s not just Thalinger, who’s afraid of Allianz’s worst. Zurich Insurance GroupThe fifth largest insurance company in Europe, in question In addition to a research article, which assesses climate elasticity in April, the appearance looks “worryingly gloomy”.

At the beginning of the year, the Swiss insurance company reminded Los Angeles forest fires that even the richest economies in the world were unprepared for the increasing impact of climatic risks.

Zurich also found that global insured losses have grown much faster than the global economy in the last thirty years.

On a basis, set -tuned by inflation, Zurich increased by 5.9% per year between 1994 and 2023, while global gross domestic product (GDP) increased by 2.7% annually in the same period. Findings show that insured losses have increased more than twice as much as global growth in the last 30 years.

Zurich Insurance Group, “Insured damages continue to grow at this rate, the climate risk for the scope of the premiums will have to increase in a way to reflect the additional risk.” in question In the article. “This will affect the level of protection that individuals and enterprises can be eager and can buy with potential results for the general functioning of the market.”

For insurers and reinsurers, the increase in the severity and frequency of extreme weather events, Astronomical growth in the catastroph bond market.