By Nor Izmawati Mostapar, Vice President of Corporate Communications & e-Learning at MII
Weather patterns are continuously altered by climate change. As climate changes become more frequent and intense, weather conditions too change for the worse. In the insurance world, the greatest impact of changing weather patterns is on the increased risk of the insured’s assets, specifically property.
When there is a changing pattern of risks, one must expect a change in the business approach. In countries where adverse and extreme weather conditions are seeing a new high, the insurance business is forced to make more pay outs to policyholders – be it flooding, droughts, heatwaves, storms, hail, tsunami, typhoon to name a few. More pay outs would mean a change in insurance operations such as reassessment of financial losses and liability risks, underwriting practices, as well as regulatory and technological changes.