The global insurance industry has racked up $50bn in losses from natural catastrophes in the worst start to a year since 2011, highlighting the challenge the sector faces from global warming.
As well as climate change leading to more extreme weather events, the first-half losses were driven by the expansion of urban areas and the rising cost of insuring them, according to a widely watched study by reinsurance group Swiss Re published on Wednesday.
“The effects of climate change can already be seen in certain perils like heatwaves, droughts, floods and extreme precipitation,” said Jérôme Jean Haegeli, the reinsurer’s chief economist.
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