A summary report conducted
by the Intergovernmental Panel on Climate Change of the United
Nations shows that climate change and extreme weather events
are becoming more frequent and more severe. In this context,
proactive changes to adapt or to develop the adapting capacity
will be required. By 2050, the costs of adaptation to climate
change will increase by USD 70-100 billion each year.
In the future, climate change will increase insurance prices,
and in many cases this means that the local governments will
have to lend their support to various insurance programs, according
to the aforementioned report.
Frequent and extreme weather events will also lead to an increase
of total damages reported on the catastrophic risk segment,
creating problems when it comes to maintaining affordable prices
for policies, especially in developing countries.
Thus, financing mechanisms against public and private sector
risks, such as insurance pools, may contribute to an increased
resistance against these risks caused by climate change. However,
if those who implement them do not pay attention to their structures
and current challenges, such solutions may cause failures on
the market. Governments often play a key role as regulatory
entities or ultimately, even as "insurers".
In this context, the broad theme of climate change and catastrophic
risks management and how these two aspects influence even the
agricultural insurance segment will be discussed during the
12th edition of the International Catastrophic Risks Forum
– ICAR 2015, which will take place on October 1st, 2015, at
the Hilton Hotel in Bucharest.