Swiss Re released Monday a report that said climate change will lead to three times more property insurance rates in the next 20 years.
According to the report, the demand for insurance coverage for buildings and infrastructures will grow faster than any other sector of the industry because of more severe weather events, rising seas and wildfires that are caused by man-made climate changes.
The business stated in a paper that it was promoting long-term development driven by urbanization and higher wealth in emerging countries in a paper they prepared for the Rendezvous September reinsurance industry conference in Zurich.
Swiss Re, which is an insurer, sought to predict the major changes that would shape the industry up until 2040.
The analysis shows that property and casualty insurance premiums will more then double to $4.3 trillion (3.6 Trillion euros), while property reinsurance will almost triple.
According to the report, property-related premiums will make up 29 percent of all premiums in 2040. This is an increase from 25 percent in 2020.
As more people move into cities, wealth will rise in emerging countries, so will the need for infrastructure protection such as power stations, rail lines and power stations. Property premiums are expected to reach over $450 billion by 2020.
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However, motor insurance prices are expected to drop from 42 percent in 2020 down to 32 percent by 2025 despite the fact that they will rise dramatically.
One, rising wealth in emerging countries will mean that more people can afford a vehicle. Technology such as assisted driving and new modes such as scooters and e-bikes will reduce the need for insurance.
Premiums for automobiles will rise to $1.4 trillion in 2020 from $766 billion today.