The risk of climate change is often seen as primarily a concern for property insurance. However, casualty insurance has also seen growing losses in the United States, and the potential for large scale losses is significant. In this session, we will discuss the history of climate change litigation, including recent cases. We will also describe three areas of risk for casualty insurance: direct litigation against industries responsible for greenhouse gas emissions, secondary effects litigation for failure to protect against climate-related risks, and proxy litigation over related harms intended to change corporate behavior. We will discuss scenarios and modeling of these risks, and provide some quantitative estimates. We will discuss how these three trends have the potential to generate losses with a significant industrial footprint in casualty, and to generate both cross-line (D&O, environmental and GL) and cross-class (casualty and property) losses for insurers. Given the multiple years of development of climate risk, there also exists significant legacy exposure.
Dr. Robert T. Reville, Cofounder and CEO, Praedicat
Dr. Adam Grossman, Cofounder and VP of Emerging Risks, Praedicat
Stephen Jones, General Counsel, Praedicat