Risk vs Uncertainty - The insurance industry distinguishes between risk, where outcomes and probabilities are known, and uncertainty, where they are not [1] Pharmaceutical Industry Impact - The GLP1 obesity drug market is projected to reach over $471 billion by 2032, raising questions about its impact on life expectancy and potential insurance payouts [2][3] Climate Change Implications - UK property insurance payouts have reached a 20-year high, and global natural disaster costs have trebled to over $100 billion annually for the insurance industry [4] - Climate change poses a systemic threat to the financial system, potentially leading to soaring insurance costs and insurer withdrawal from climate-linked risks [5] Industry Adaptation - The insurance industry needs to shift from reactive underwriting to proactive risk mitigation in response to systemic changes [6] - Deep system changes present an opportunity for long-term investors to create a net-zero, nature-positive, socially constructive, and digitally enabled economy [6]
Are Insurers Longing For Risk? | FT Rethink
Financial Times·2025-09-25 08:53