Insurance companies are concerned that the world can become unprecedable soon

The best insurance companies fear Climate crisis Industry solutions can soon exceed, which actually threatens to form entire regions all over the world that are not applicable.

Günther Thallinger, Member of the Board of Directors AllianzOne of the largest insurance companies in the world, recently explained how the world is close to temperature levels quickly, as insurance companies are no longer able to provide coverage of financial services, such as mortgages and investments.

In practice, this scenario means that some may have difficulty in the ability to withstand the costs of covering home insurance, which is usually a prerequisite for obtaining a real estate loan.

In LinkedIn mail Thalinger was published in late March, and Thallinger was expressing the rapid carbon removal, noting that the entire classes were “actually humiliated” where harsh weather events occur. Perhaps the most interesting at all, has warned that the increasing climate crisis seems to be on the right way to destroy capitalism.

Insurance, which is It is considered Since the invisible lubrication oils of the global economy have a unique role that it plays in tackling climate -related risks. As professional risk managers, insurance companies allow investors to face calculated risks and protect individuals and companies from financial losses.

Polita, who is in charge of the Investment and Sustainability Department in Allianz, told CNBC that nearly two -thirds of economic losses from natural disasters are currently not believed in them, indicating “a major societal problem.”

The alleged protection gap means that the financial burden of these disasters often falls on individuals, companies and governments, instead of insurance companies.

“If this folder grows more than that, we simply have a social situation that cannot be tolerated anymore because there are no longer a lot of risks that are no longer covered,” Ebeenger told CNBC by calling.

“Logic is not ours or a mine. No, certainly no. There are many people who are already talking about how to secure some assets. It is very difficult to deal with these assets as an investor.”

The warning comes at a time when the world is on the way to increase the temperature of up to 2.6-3.1 ° C this century, according to what he said United NationsIt is a level that will lead to “catastrophic” consequences on the planet.

Scholars Beware over and over again The average global temperatures should remain less than 1.5 ° C to avoid the worst in the climate crisis in the store.

This threshold is Recognized As an important goal in the long run because the so -called transformation points become more likely to be more than this level. The turning points can lead to exciting or Unfortunate changes For some of the largest land systems.

“We can really talk about adaptation. How to build our infrastructure, our homes, our streets, our pipelines, and our networks in a way that they can withstand some forms of weather phenomena. This is something we can do with a very easy economic situation behind,” said Ebeenger.

Allianz estimates that the cost of economic losses from natural disasters is usually 10 times higher than the cost of adaptation, noting that this provides a clear economic incentive for policy makers to invest in preventive measures.

“If we continue, with the policies we have there, it is clear that we are on a path of 2.7 degrees or 3 degrees where the adaptation is no longer simply executed anymore. This is what it is.

It is not only Allianz for fear of the worst. Zurich Insurance GroupThe fifth largest insurance company in Europe, He said In April, along with a research sheet to assess climate flexibility in which expectations appear “dark dark”.

The Swiss insurance company was martyred Los Angeles fires At the beginning of the year, as a blatant reminder that even the richest economies of the world are not ready for the effect of increasing climate risk.

Zurich has also found that secure global losses have grown at a rate much faster than the global economy during the past three decades.

On the basis of inflation, Zurich said that the average secure losses increased by 5.9 % annually between 1994 and 2023, while global GDP increased by 2.7 % annually during the same period. The results indicate that secure losses have multiplied more than weakening for global growth over the past thirty years.

“If the loss of losses continues to grow at this rate, the coverage installments for climate risk will need to increase to reflect the additional risks.” He said In the paper. “This, in turn, will affect the level of protection that individuals and companies are ready and able to buy, with possible consequences for the total performance of the market.”

For insurance and reinsurance companies, the increase in the intensity and frequency of harsh weather events coincided with Astronomical growth In the disaster bond market.

It was created for the first time in the 1990s, the so -called cat bonds indicate a type of financial tool designed to raise funds for insurance companies in the event of a natural disaster, such as a hurricane or an earthquake.

Swiss Ray, one of the leading global insurance companies, said in a recent report that the CAT bond market has expanded by 75 % since the end of 2020, noting that the trend that shows little signs of slowdown.

However, for Allianz, the climate crisis threatens to push a long -term relationship between more risks and more work for insurance companies to the collapse point. He said that at some point, this could have repercussions on financial markets.

Steve Evans, the owner and editor -in -chief of ARTEMIS.B Data provider, warned that the insurance industry will not continue to bear the weight of economic losses from natural disasters.

“Unless flexibility and protection are increased in place, the more disasters impact on areas, and the higher the cost of securing them. This may be a terrible cycle to be honest with you,” Evans told CNBC by calling the video.

“If the losses continue to escalate, the matter will become invisible for insurance and reinsurance companies and even capital markets. So something must be done to combine flexibility and protection.”