COP27: Climate change is threatening our health and forcing insurers to adapt
- Between 2030 and 2050, climate change is expected to cause around 250,000 additional deaths a year, the WHO estimates
- While few insurance products geared for individuals are indexed specifically to the impact of climate change, demand is growing
Climate change, which causes heat wave-related deaths, climate-sensitive infectious diseases, changes in physical activities and other health issues, is forcing insurance companies to recalibrate premiums and offerings, as health takes centre stage at international climate talks in Egypt.
While challenges remain in accurately integrating climate risks into products, insurers are starting to take action to account for a huge protection gap, as many people worldwide are still underinsured or have no health or life insurance.
“The insurance industry is starting to see the correlation of climate change [and] the state of people’s health,” said Joan Collar, Asia and Pacific regional leader at Mercer Marsh Benefits (MMB) under New York-based insurer Marsh McLennan.
As climate change-related natural disasters become more frequent, there should be more health-linked insurance programmes to address the problem, she said.
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Calls for ‘climate justice’ as COP27 puts focus on compensation for poorer, vulnerable countries
According to the World Health Organization (WHO), between 2030 and 2050, climate change is expected to cause around 250,000 additional deaths per year globally from malnutrition, malaria, diarrhoea and heat stress.