Focus: Natural catastrophes and climate change

Swiss Re first detected the potential long-term challenges posed by climate change around 30 years ago. As a re/insurer, we see climate change as a key issue because it leads to an increase in severity and a change in the patterns of natural catastrophes such as windstorms, floods, excessive rainfall, heatwaves and drought. The combination of climate change with growing asset concentrations in exposed areas will cause a steady rise in losses.

Providing effective re/insurance protection against large natural catastrophes creates significant benefits for our clients and for society at large. In 2021, premiums for natural catastrophe covers exceeding losses of USD 20 million amounted to USD 3.9 billion¹, which is equivalent to approximately 22% of Property & Casualty reinsurance premiums.

Climate change not only creates risks; it also presents new opportunities. Developing re/insurance products and services that address climate change is one of the core ambitions of our Group Sustainability Strategy. Through our offering, we pursue two different but complementary objectives: adapting to the effects of climate change and supporting the transition to a low-carbon economy.

To find out more about how Swiss Re assesses the impact of climate change risks and opportunities on our business, see our chapter on climate-related financial disclosures in our Financial Report 2021.

1. For losses exceeding USD 20 million. Net of external expenses such as brokerage and commissions. In previous years, premiums including external expenses were reported, but this is now aligned with the methodology used in the Financial Report 2021.