Battening Down The Hatches

ICAEW’s Quarterly Magazine

The impacts of climate change will have serious consequences for the way in which the industry conducts its business, and this will materialise in two ways – physical risk and transition risk. “Physical risk refers to the risk of increased frequency and severity of extreme weather events, and the impact that will have on what we insure,” she says. “For example, at what point does it become too costly to provide cover to high-risk areas of the east coast of America?”