Impact of climate-disruptive industries on the global insurance and risk management scenario

Abstract

The insurance sector in the ongoing socio-economic development era is a widely established rearmament for risk management, safeguarding people against potential future losses. As a means of protection from financial loss, Insurance companies render services and policies that are best suitable as per the current global scenario. The industry has been nurturing well the values of uprightness. But the fast emerging global risks especially in the form of climate change, challenge the sustainability strategies of the particular sector. Climatic change occurring as a result of uninterrupted detrimental industrial activities has transformed the methodology of survival and adaptation for both the industries causing climate change and the insurance sector. On one hand, the emerging primary and secondary sector activities thrust demand for insurance services, on the other hand, their unbefitting activities generate environmental consequences expanding the gap of risk coverage in the insurance sector. This paper gives an overview of the impact of industries causing climatic disruption on the Global insurance and risk management scenario. It also discusses the diversity of provocative actions that are a potential cause of risk expansion and examined the effect of undesirable industrial activities on the insurance sector with respect to various industries causing climate change. Along with this, the future implications, prospective strategies, and risk-absorbent solutions are also identified simultaneously.