In the briefing Silent Climate Risks: The Hidden Threat to APAC Insurance Portfolios, Mark Weatherhead, Managing Director, Head of Analytics—Southeast Asia and Pacific, addresses how climate change has become an increasingly important factor in natural peril risk calculations, particularly in the last decade, when we have witnessed a substantial increase in both the frequency and severity of weather-related disasters, most notably floods, hail, severe convective storms and wildfires across the Asia Pacific region.
However, there has been less attention paid to the slow, insidious increase in annual insurance claims driven by “silent climate” events. These small but high-frequency losses, often overshadowed by more dramatic weather events, quietly drive a steady accumulation of claims that erode insurer margins over time, posing a significant long-term challenge to insurers.