The financial crisis has transformed the risk landscape for insurers and their focus on key risks. A recently published survey conducted by the Center for the Study of Financial Innovation in association with PriceWaterhouseCoopers indicates that climate change is “[l]osing its urgency as an insurance risk.” A copy of the survey can be obtained by clicking here.

The survey indicates that climate change’s status has dropped on insurers’ risk meter from number 4 in 2007 to number 28, which the survey believes “reflects a sense of declining urgency about the issue.” The survey, however, cautiously reported that insurers believe that climate change is an area of risk with uncertainty and that “the novelty of the risk could create unexpected long-term liabilities.”