How Banks Can Quantify Physical Climate Risk

Climate change is getting expensive. According to Aon, 421 notable disaster events last year generated $313 billion in economic loss, of which only $132 billion (42%) was insured loss.

“Hurricane Ian was the second-costliest insured event on record globally, just behind Katrina, and we saw additional deadly flooding in Missouri and Kentucky in July,” said Dan Raizman, Senior Director, Climate Risk Advisory at Aon, at a recent RMA conference.

As a result, it has never been m…