
2050 Investors · 2022-04-14 · 31 min
In insurance lingo, an “Act of God” is an event outside of human control or activity, such as natural disasters. With the growing frequency of such "Acts of God" - amplified by acts of men - the question of the insurability of climate risks is front and center. From the Oracle of Delphi's predictions to the emergence of insurance as a safeguard against unforeseen calamities, Kokou’s narrative weaves through time to contextualize the contemporary role of insurance in mitigating risks. He starts by tracing the roots of insurance back to ancient Greece, then fast forward to the present day where insurance has evolved into a global industry worth over $5.5 trillion, serving as a cornerstone of modern economies. As climate change increasingly disrupts global weather patterns, the insurance industry faces unprecedented challenges. Natural catastrophes become more frequent and severe, and questions arise about the industry's sustainability and ability to adapt. Will climate change render insurance unaffordable in the long run? How can insurers reshape their business models to confront climate risks sustainably?
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