Unpicking North Atlantic Hurricane Risk: Exposure changes compound the impact of climate change on hurricane losses by more than twice over

There has been much discussion in the market about the effect of climate change on hurricane risk.

Whilst there remains some uncertainty around changes in tropical cyclone frequency, there is little debate that anthropogenic global warming has increased the severity of North Atlantic hurricanes. A lot of analysis has been directed towards modelling the impact of the change in hurricane severity. But, in our view, an ongoing re-balancing of the discussion between hazard and exposure is needed within a reinsurance context.

Changes in hazard due to climate change is only one part of the picture. Changes in exposure mean more people living in coastal communities in the US than ever before, and inflation driving replacement costs to record levels.


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