The ILS team at LGT Capital Partners has published a new paper in Communications Earth and Environment entitled “Increase in insurance losses caused by North Atlantic hurricanes in a warmer climate.” This research highlights how climate change is driving higher insurance losses and explores the relevance of global warming in relation to other critical market drivers, such as exposure growth and rising construction costs.

By analyzing the drivers of climate change and looking at its effects on US hurricanes, the peak peril for ILS, the paper offers actionable insights into managing climate risk effectively. It further demonstrates how the accurate quantification of climate impacts is important to ensure attractive returns, even as event activity escalates.

Read the full article here.