The Earth's global climate system is warming. These trends challenge insurers to examine both the economic impact of climate change and the adequacy of the tools used to measure and price risks. One of the primary concerns for insurers is the potential for these changes in climate and weather patterns to affect extreme weather events.
This report has three main parts. The first section reviews the latest findings in climate change science and its effect on extreme weather events. The second outlines what catastrophe modelling is and how it came to be developed. The third section examines whether and how catastrophes models account for climate change through a series of case studies provided by a range of model providers, including AIR, RMS and EQECAT.