Climate change: an unending debate that is most likely going to haunt us for generations, not that it hasn’t already been doing so. Are you familiar with Munich Reinsurance? They practically deal with “unpredicted situations” and dealing with them appropriately earns them money. Not dealing with them, or failing to predict them, can simply throw them into bankruptcy.
Climate change is on the top of Munich Re’s list, since it is totally unpredictable as to how it is going to evolve in the years to come. We know that storms are stronger, droughts leave more people without food and the ice at the top of the world is melting, but we can never be sure when “the beginning” or “the end” are going to start. And Munich Re are not sure about this either.
As far as insurance goes, Munich Re are not exactly different from the rest of the competition. They have to follow standard procedures and make sure that every natural catastrophe is properly covered. Their services are premium, no doubt, but the way they have to deal with this is become blurrier with every day. Not because they are not doing their job right, but because climate change is simply unpredictable.
Until now, Munich Re were arranging all their plans based on “event sets”. These are major databases that mention what people have been asking for in return for the damage and casualties that have occurred in their specific zones. After studying these “event sets”, people are creating “loss-return curves” which give a more or less accurate indication about how events will develop in the future.
Munich Re have taken interest in climate change ever since 1974 and the current development is dragging the company, as well as the other insurers on the globe, towards uncertainty. Nature has become extremely harsh with humanity and for good reasons. After having bombarded this planet with extra heat for centuries, it is earth’s right to claim itself back.
But this does not leave us in a comfortable position. This is climate change: an unending debate that will most likely not be solved any time soon. It is a sad truth that we have to face: we are no longer in control. Or if we want to be, we need to sacrifice mass production, thus millions of lives. We need to feed the world, but feeding the world makes it a hotter place.
Photo Credits geograph.org.uk