Climate change and health insurance

Original text here from Patrice Bernard (LinkedIn)

When considering the impacts of climate change on the insurance industry, property—both residential and commercial—usually comes to mind first. However, an article by AXA Prevention on environmental health highlights that it’s far from the only sector facing major transformations.

The consequences of global warming on individuals are vast and multifaceted. First, there are the exceptional events—hurricanes, unusual rainstorms, heatwaves—and their direct effects on the environment, such as flooding, landslides, and wildfires. These events are increasing in frequency and intensity, leading to growing numbers of victims and contributing to the development or worsening of certain health conditions.

Beyond these immediate impacts, the underlying causes of climate change also harm human health. Examples include:

• Chronic illnesses and medical conditions caused by pollutants in the air, water, and food.
• Epidemics fueled by deep disruptions to natural ecosystems, such as COVID-19.
• Psychological tolls stemming from anxiety and stress related to these cascading environmental and social challenges.

For AXA Prévention, the primary challenge is to anticipate these risks and implement preventive measures. While governments usually lead such efforts, private initiatives are emerging as well. Key actions include:

• Educating the public about the dangers of climate-related health risks and how to mitigate them.
• Addressing root causes, such as improving air and water quality, ensuring food safety, enhancing housing standards, and preserving biodiversity.

Despite these efforts, global health trends are expected to continue deteriorating in the short to medium term. Health coverage—whether provided by public systems, private insurers, or mutual organizations—will need to adapt to this new reality.

While insurers may manage steady, predictable risks relatively well, the rise of unpredictable events will challenge traditional models. This increasing volatility will demand innovative approaches to coverage and risk management.

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