The chief executive of Aon, one of the world’s largest insurance brokers, has called for better modelling of climate risks, saying conditions in the property insurance market were “stressed” after a surge in claims from extreme weather.
Home insurance is becoming increasingly unaffordable in areas such as California and Australia, as global warming has made storms, floods and wildfires more frequent and severe. The problems have been partly driven by a pullback by reinsurers, whose contracts sharing the costs of catastrophe payouts underpin the property insurance market.
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