Rising sea levels and re/insurers
Sea-level rise increases the reach and severity of coastal flooding and storm surge. Over time it can change the risk profile of entire coastal cities, ports and infrastructure.
For insurers and reinsurers, the challenge is that sea-level rise is gradual but its effects show up in extreme events. Models must combine long-term trends with short-term hazards such as hurricanes and winter storms.
Expert views differ on how quickly risks will grow, which is why the industry increasingly uses scenario analysis and supports adaptation measures such as coastal defenses and land-use planning.