Australian insurers have so far adopted a relatively relaxed attitude to climate change with most doing very little at all. In an article featured in the Optima 2018 report, Finity’s Tim Andrews reveals that climate change is largely seen as a future issue, in terms of its impact on insurers and they are managing the risk as and when it changes using underwriting and pricing levers. This current relaxed approach brings the risk of having to play catch-up. The article suggests a more immediate, ongoing and gradual response to pricing for climate change, based around insurers making greater use of external data.
To learn more about climate change and claims costs download our Optima 2018 feature article here.