IMPACT OF CLIMATE CHANGE ON INSURANCE COMPANIES

Abstract

Insurance and re-insurance definitely belong to the category of managing and mitigating the consequences of natural disasters. Climate change represents operationally an external risk for insurance companies and currently accounts for as much as 40 percent of all damage types among weather-related property insurances. The frequency and intensity of extreme weather events is increasing, making the financial consequences felt due to the globalised insurance business also in the areas not affected by natural disasters. The article deals with the growing trend of weatherrelated natural disasters in Europe in the period concerned and the recorded loss events related to the 2008 summer thunderstorms in Slovenia. An analysis of flood hazard and the likelihood of heat waves in Slovenia is also given. In cooperation with climatologists and based on climate scenarios and new threat assessments of weather-related natural disasters, insurance companies will have to identify future problems and the potential of new opportunities brought through climate change. Considerations will also have to be given to new forms of insurance and expansion of activity to the mitigation of climate change and obviation of its reasons.