Failure to handle local weather dangers may have an effect on insurers’ finan…

Property/casualty insurers’ monetary power scores could come below strain in the event that they fail to correctly handle local weather change dangers, DBRS Morningstar mentioned Wednesday.

The Toronto-based credit standing company mentioned in a word that, to this point, it has not revised any property/casualty insurer’s score, or development, particularly due to local weather change threat.

Nonetheless, insurers’ potential to handle local weather threat continues to issue into many elements of its credit score threat evaluation, corresponding to threat profile, earnings potential, liquidity, capitalization and, to a lesser diploma, franchise power, DBRS Morningstar mentioned.

Property insurance coverage premiums have been persistently growing in all elements of the world since 2019, in keeping with the word. “This development is predicted to proceed, pushed not less than partly by the altering local weather,” it mentioned.

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