Insurers and electrical utilities are particularly vulnerable following record-breaking years of fires in 2017 and 2018 due to climate change and increased population of at-risk areas, said Bailey director of climate resilience, Rob Marsh & McLennan Insight's. Electrical utilities face potential liabilities as their assets are at risk of starting fires, while insurers should prepare for increased wildfire risk through improved modelling, risk transfer solutions and parametric insurance products, according to Marsh & McLennan Insight's. He added that wider take-up of insurance and preventative measures in vulnerable communities was also key.
Insurers and electrical utilities are particularly vulnerable following record-breaking years of fires in 2017 and 2018 due to climate change and increased population of at-risk areas, said Marsh & McLennan Insight's director of climate resilience, Rob Bailey. Electrical utilities face potential liabilities as their assets are at risk of starting fires, while insurers should prepare for increased wildfire risk through improved modelling, risk transfer solutions and parametric insurance products, according to Bailey. He added that wider take-up of insurance and preventative measures in vulnerable communities was also key.