This study examines the challenges faced by the insurance sector due to climate change and explores potential solutions such as index-based insurance and risk management strategies.
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[...] The logic of the contracts is based on the number of hectares insured, the insurer secures two advantages: of more significant guaranteed volumes, which increases its turnover and a potentially lower indemnification cost, as losses to be covered (related to clients' turnover) can be limited by this modulation. Conclusion In summary, our report has allowed us to study the challenges and perspectives of the insurance sector in the face of climate change challenges. The challenges and perspectives highlighted converge towards adapting the offers proposed to prospects and customers of these companies. And this, due to the increasing financial risk that climate fluctuations impose on the financial health of insurers. [...]
[...] ( February). 'If we do nothing, we won't find insurance,' this exposed commune to climate risks, can't p. France 3 Pays de la Loire. https://france3-regions.francetvinfo.fr/pays-de-la-loire/vendee/sables-olonne-0/si-on-ne-fait-rien-on-ne-trouvera-pas-d-assurance-cette-commune-exposee-aux-risques-climatiques-ne-peut-pas-debourser-un-million-d-euros-de-franchise-3107914.html Garrido, J., Milhaud, X., Olympio, A., & Popp, M. (2024). Climate risk and impact on insurance. Introduction to Index Insurance (at a personal pace). (2024). https://www.worldbank.org/en/olc/course/43992 Keucheyan, R. (2017). Financializing natural disasters: insurance, finance and climate change. [...]
[...] What do the new guarantees currently offered within agricultural insurance contracts demonstrate? To answer this question, we will compare the coverage of a risk with 3 insurers. We will target this risk within our methodology. A. Research Methodology 1. Research of authorized insurance companies to commercialize contracts in the agricultural sector Firstly, in the first part of the methodology, we have researched authorized insurance companies to commercialize contracts in the agricultural sector. The list of these insurance companies is listed on the website of the Ministry of Agriculture and Food Sovereignty at the following web address: https://agriculture.gouv.fr/assurance-recolte-la-liste-des-entreprises-dassurance-habilitees. [...]
[...] The ACI index highlights through the following graph: - A correlation between the evolution of the red curve representing the '10-year moving average of total insured losses'1 and the evolution of climate-related events (earthquakes and tsunamis in dark blue, weather-related in light blue and caused by humans in yellow); - The red curve is rising, with an acceleration of its progression from the 1990s; which is to be correlated with the evolution of climate-related events that strongly increase from the late 1980s/early 1990s. This index helps to quantify the impact of climate change on the balance sheets of insurance companies and thus to measure the sustainability of insurance activities. That is why many countries have copied this North American index to follow the evolution of climate impacts on insurance companies within their territories. [...]
[...] The PPRN is a planning document that regulates the use of land based on the natural zones that are subject to them (The Natural Risk Prevention Plan (NRPP or NRPPN), 2023). He emphasizes that insurers can 'In accordance with Article L. 125-6 of the Insurance Code, policyholders residing in buildings constructed in violation of a PPRN may be denied CatNat coverage. In addition, the absence of a PPRN in a particularly disaster-prone commune allows insurers to impose an increase in the deductible, i.e., the portion of the damage remaining at the policyholder's expense, in the event of a disaster. [...]
