Disasters to cost world $450bn a year from climate change and development
- Posted on September 1, 2026
- By Financial Times
- 4 Views
- 1 min read
In brief
Climate-related disasters are projected to generate annual losses exceeding $450 billion globally, driven by accelerating environmental changes and rapid urbanization. The insurance industry faces mounting pressure as carriers increasingly exclude or limit coverage for climate-linked risks. This widening protection gap leaves governments, businesses, and individuals vulnerable to unprecedented financial exposure, demanding urgent policy reforms and innovative risk management strategies to address the climate crisis.
Summary auto-generated by AI from the original publisher's content. Editorial standards.
Disasters to cost world $450bn a year from climate change and development
More than half of losses not covered by insurance as carriers carve out risk and cut exposure
