The impact of climate risk on the insurance industry: Recent developments and emerging risk mitigation approaches
Abstract
The present paper discusses the key emerging risks in the insurance industry due to the worsening of the global climate. First, the paper identifies the adverse impacts that have already taken place in the recent past in the insurance industry. Further, it discusses the various tools the industries utilise to manage their risks, such as underwriting, risk management and public disclosures. Finally, some key measures taken by the industry are discussed that include not providing insurance to polluting industries, tightening risk management governance and mandatory disclosures recommended by different insurance regulators.
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Author's Biography
Sonjai Kumar is a risk management professional with extensive insurance industry experience of over 25 years in the areas of insurance, actuarial science and risk management. His passion for risk management, design thinking approach and his analytical abilities are utilised to manage crucial assignments in strategic risk management. He has worked with the business to develop and embed a robust risk management framework, developing and implementing an effective change management process. He has been involved in setting up risk management functions and implementing risk management processes such as risk policies, risk appetite, risk culture, corporate governance, strategic risk management etc. Mr Kumar is currently undertaking a PhD in enterprise risk management in the insurance sector at the Fortune Institute of International Business (FIIB), New Delhi, India.
Purnima Rao is a finance professional and educator having more than 14 years of experience in industry and academia. Her research interests include SME financing, equity markets and corporate finance. She has published many papers in reputed journals and is associated as a reviewer in international journals.
Citation
Kumar, Sonjai and Rao, Purnima (2023, August 1). The impact of climate risk on the insurance industry: Recent developments and emerging risk mitigation approaches. In the Journal of Risk Management in Financial Institutions, Volume 16, Issue 2. https://doi.org/10.69554/YIYJ8175.
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