This report by the private sector advocacy group CERES explores the challenges that climate change presents to the US insurance industry and wider economy.  The report acknowledges that insurance is intrinsically linked with the wider economy and that any failings by insurers to consider the impacts of climate change will cascade down and affect the ability of the private sector, state and society to rebound from climate-related shocks.  The report shows that a combination of poor investment returns, changes to the dominant catastrophe and considerable losses from catastrophe events in recent years has sent ripples through the insurance community’s earnings.  According to the report an “extended period of hits from catastrophic losses could erode the insurance sector’s ability to make necessary future operational and strategic investments” (p.13).

This insightful report shows that without action the effects of climate change are likely to have considerable impacts on the industry and subsequently may affect insurance affordability and availability.