Insurance: How are European insurers to adapt to climate warming?

Th e answer to this question is complex because of i ) the difficulty in modelling the increase in temperature and its consequences, and ii) the wide variety of risks insurers face, both in terms of claims experience and investments valuation. We analyze in this report implications related to both the insurers’ assets and liabilities, not forgetting Solvency II regulation, and give our view on what we believe European insurers have to do.