Insurers and electrical utilities are particularly vulnerable following record - breaking years of drought in 2017 and 2018 due to climate change and increasing population of at - risk areas , said Marsh & McLennan ##shire 's minister of environmental 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 - over 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.