Floods in the Belgian village of Tiff on 16 July, 2021 | Credit: Régine Fabri

Floods in the Belgian village of Tiff on 16 July, 2021 | Credit: Régine Fabri

Cecilia Keating, Business Green »

The growing frequency and severity of extreme weather events caused by climate change is set to send property insurance prices soaring over the next 20 years, Swiss Re has warned.

In a report published earlier this week, the reinsurance giant’s research unit calculated climate-related risks will drive a 22 per cent increase in global property premiums, a spike that would equate to around $183bn in additional costs.

Overall, the firm expects property insurance premiums will triple to be worth $1.3tr in 2040, up from $450bn in 2020, driven largely by economic development and climate change, with the former expected to make up three quarters of the rise.