Why insurers worry the world could soon become uninsurable

Some fear the world is fast approaching temperature levels where professional risk managers will no longer be able to offer cover for financial services Günther Thallinger, a board member at Allianz, one of the world's biggest insurers, says the climate crisis could make adaptation economically unviable Zurich Insurance Group, meanwhile, said alongside a recent research paper assessing climate resilience that the outlook looks "alarmingly bleak

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Top insurers fear the climate crisis could soon outpace industry solutions, effectively threatening to make entire regions around the world uninsurable.

Günther Thallinger, a board member at Allianz, one of the world's biggest insurers, recently outlined how the world is fast approaching temperature levels where insurers will no longer be able to offer cover for financial services, such as mortgages and investments.

In practice, this scenario implies some may face difficulty being able to afford home insurance cover, which is typically a prerequisite for getting a mortgage.

In a LinkedIn post published in late March, Thallinger made the case for rapid decarbonization, pointing out that entire asset classes were "degrading in real time" as extreme weather events take their toll. Perhaps most strikingly of all, he warned the worsening climate crisis appears to be on track to destroy capitalism.

Insurance, which is regarded as the invisible lubricant of the global economy, has a unique role to play in addressing climate-related risks.

As professional risk managers, insurers routinely allow investors to take on calculated risks, protecting individuals and businesses against financial losses.