In a new report, rating agency Fitch states that climate change is stimulating the development of the catastrophe bond market, as demand for protection rises and the capital markets offers an efficient source of reinsurance against climate-linked catastrophe events.
While the reinsurance market is facing challenges from macro-economic factors such as inflation, a persistent threat is that “weather-related catastrophe losses are likely to climb as the climate continues to change,” Fitch Ratings explained today.
Reinsurers are adding to their risk mitigation capability, to better manage the complexity and uncertainty surrounding climate change, Fitch says.
FULL ORIGINAL PUBLICATION HERE
