Insurers must enable people to make choices around CAT risk

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Insurers and reinsurers may not be able to stop climate change, but they can take a role in reducing its effects and helping people recover when catastrophes happen.Ways they can do so include.

FM Global EVP: Insurers must enable people to make choices around CAT | Insurance Business As the population of the planet slowly tips from being non-urban to urban, our cities are growing faster.

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In addition to holding equity capital, insurers hedge their risks of large losses through risk-transfer mechanisms. The costs of risk transfer include reinsurance premiums as well as premiums paid for alternative risk transfer instruments (e.g., Cat bonds). These costs are added into the insurance premium in the contingency load.

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