Environment Analyst: How insurers are adapting to climate risk

California’s wildfires have exposed something ugly: when climate risk gets too severe, insurers pull back, governments step in, and nobody is really pricing the danger properly.

In Environment Analyst, Oka CEO Chris Slater argues that this is not just a property-market problem. It is also becoming a carbon-market problem. Nature-based projects, and even some engineered ones, are increasingly exposed to the same physical risks they are meant to help mitigate.

His core point is simple: insurance cannot keep treating climate risk as static. It has to move towards adaptation, with underwriting and policy conditions that respond to how exposures are actually changing on the ground.

“Governments often act as ‘an insurer of last resort’, but that doesn’t accurately price the risk or deal with the risks over time… The industry needs to move to an ‘adaptation model’.”

Read the full article in Environment Analyst.