Climate Reinsurance

Climate Reinsurance

Climate Reinsurance

11/07/20

“How can climate insurance organizations insulate themselves from extreme risk by purchasing insurance from other organizations?”

Climate insurance markets are extremely risky. One great hurricane or wildfire event may wipe out so many assets that the insurance company that backed them will become insolvent. To prevent this from occurring, these climate insurance organizations can purchase insurance from other companies in what’s called Climate Reinsurance. This will insulate them from extreme risks and allow them to continue operating.

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