Reinsurers reduce risk as number of climate catastrophes rises

Trail of destruction: Natural disasters are becoming more frequent as Hurricane Idalia shows in Horseshoe Beach, Florida. There have been 23 extreme weather events in the US so far this year that cost at least US$1bil and now it’s getting tough to find insurance. — AP

MONACO: Natural disasters are now happening so frequently that reinsurers – the firms that sell insurance to insurance companies – are scaling back their exposure to such risks.

While this may make business sense, it raises the question of whether individuals and businesses will be able to protect themselves against the effects of climate change if their insurance companies cannot even get coverage themselves.