Huan Qiu Wang·2025-08-09 03:26Core Viewpoint - The global insurance industry is facing a critical challenge as climate change leads to increasingly frequent extreme weather events, which may soon exceed the industry's capacity to provide coverage for financial services such as mortgages and investments [1][3]. Group 1: Insurance Industry Challenges - Allianz's board member, Gunther Thalinger, warns that the world is approaching a temperature level where insurance companies can no longer provide coverage for financial services like mortgages [3]. - Thalinger highlighted that losses from extreme weather are causing asset classes to "degrade in real-time," and the worsening climate crisis could potentially "destroy capitalism" [3]. - Approximately two-thirds of economic losses from natural disasters are currently uninsured, indicating a significant risk burden on individuals, businesses, and governments [3]. Group 2: Economic Impact of Natural Disasters - Zurich Insurance Group's report indicates that from 2014 to 2023, extreme weather events caused approximately $2 trillion in economic losses, with the frequency and intensity of disasters increasing due to long-term climate changes [4]. - The global insured loss growth rate (5.9%) has outpaced global economic growth over the past thirty years, suggesting a concerning trend for the insurance market [4]. - If the trend of increasing insured losses continues, insurance companies may need to raise climate-related premiums, which could affect individuals' and businesses' willingness and ability to purchase insurance [4].