Zurich Insurance calls for stronger public-private coordination on climate risks

Extreme weather events caused ~$2t in economic losses over the past decade.

Zurich Insurance Group calls for stronger public-private coordination to manage rising climate risks. 

The report, titled “Climate Risks: Strategies for Building Resilience in a More Volatile World,” outlines the growing economic toll of extreme weather and identifies steps to improve resilience.

Citing data from the International Chamber of Commerce, Zurich noted that extreme weather events such as hurricanes, floods and wildfires caused approximately $2t in economic losses globally over the past decade. 

The insurer urges governments and insurers to work together on three priorities: invest in risk prevention and reduction, enhance insurance accessibility through supportive policy frameworks, and develop public-private risk-sharing mechanisms to finance climate resilience. 

Zurich advocates for measures including updated building codes, better use of climate data, and incentives to increase insurance coverage.

Teresa Wong, Chief Risk Officer at Zurich Malaysia, said that more than half of Malaysian respondents in the company’s Climate Resilience Survey felt unprepared for climate-related disasters, with financial constraints being a major barrier. 

She emphasised the need for insurers to go beyond traditional risk transfer and focus on prevention and long-term adaptation.

The report warns that insurance coverage is not keeping pace with increasing losses, which could lead to more households and businesses remaining underinsured or uninsured.