Suryaa Business Desk: Bhima (Insurance) sector has expressed deep concern due to climate change and natural calamities that are taking a severe form across the world... Due to climate change and natural calamities that are taking a severe form across the world, the Bhima (Insurance) sector is expressing serious concern. Insurance giants and experts strongly warn to take appropriate measures now keeping in mind the big risks that will be faced in the future. Research reports make it clear that severe storms, floods, wildfires and droughts are increasing as the planet warms, directly impacting global insurance and financial systems.
Due to the recent natural disasters occurring in many parts of the world, the amount of claims to be paid by the insurance companies is increasing hugely. Industry sources are concerned that it is becoming difficult to provide insurance coverage to properties and residences in some areas as the severity of accidents exceeds expectations. Apart from just paying compensation, there are developments such as revising premium rates to suit the increased risk or reducing coverage in certain segments. These developments place an additional burden on the common people and the commercial business sectors.
Experts suggest extensive use of technology and advanced data analytics in predicting the impact of climate change. There is an urgent need for governments and the private sector to work together to build climate-resilient infrastructure. Not only from a business point of view, but also to maintain long-term financial stability, environmental protection measures should be given top priority, otherwise the global financial markets are at risk of facing a severe crisis in the coming days, experts in the insurance sector have warned.