When it comes to property and casualty insurance, AXA CEO Thomas Buberl highlights one major risk: climate change. He notes a significant increase in the number of natural disasters, including not only major events such as hurricanes, but also forest fires, floods and droughts. This upward trend is leading to an increase in the costs associated with these natural disasters.

To assess the risk associated with climate change, AXA no longer relies solely on historical data, as climate dynamics have evolved. The company is working closely with scientists to better understand what impact global warming could have on risk-taking. As a result, AXA has reduced its risk-taking compared to the past, adopting a more cautious approach in the face of this new reality.

Buberl explains that the increased frequency of hurricanes can have a paradoxical effect on the insurance sector. On the one hand, it may stimulate demand for insurance by raising awareness of the need to protect against these events. On the other hand, it implies a higher number of claims to be compensated. However, he points out that prevention is a strategy that pays off, as shown by the fact that claims costs tend to fall over time, even when inflation is taken into account, as can be seen by comparing the costs generated by hurricanes Katrina and Irma, 15 years apart.

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