Annual Survey Results
Climate
Change
Demand for insurance coverage that protects against risks related to climate change is set to rise as its impact becomes more evident.
As reflected in last year’s survey, brokers again say they believe climate change will pose a high risk in the long term, with a majority of them saying climate change is a low priority for their clients in the short term. However, clients say climate change will pose a high risk. More than half of respondents from SMEs believe climate change already poses a near-term risk. SMEs say they are most concerned about climate change increasing the risk of flooding and human health crises.
Survey Key Findings
More Likely to Purchase Coverage
Forty-seven percent of SMEs say they will likely purchase insurance that protects against risks associated with climate change over the next five years, up from 44% in 2018.
Differing Opinions in U.K.
Thirty-five percent of U.K. brokers see climate change as a medium/high priority in the short term, but nearly three-quarters (71%) consider it a priority in the long term.
less Urgency in U.S.
More U.S. brokers (73%) think climate change represents a far greater priority in the long term than in the short term.
Growing Concern over Human health effects
In 2019, SMEs are more concerned about the effect climate change will have on human health (36% vs. 31% in 2018). Concerns about flooding remain largely unchanged.
“As global climate continues to change, it’s predicted that while hurricanes may become less frequent, they are likely to be more intense, with stronger winds and extreme precipitation. The intensity of storms creates a growing problem as well as an opportunity for our industry, particularly in the U.S., where flood insurance reform has become an urgent priority for both the industry and government institutions.”Federico Waisman, Head of Analytics, Ariel Re
Fewer brokers in 2019 see climate change as a high risk
Based on your interactions with clients, what kind of risk do you feel climate change poses to their businesses in the long term?
Overall
U.S.
U.K.
Same percentage of SMEs in 2019 see high long-term risks of climate change; more in U.S. see it as a medium risk
What kind of risk does climate change pose to your organization in the long term?
Overall
U.S.
U.K.
