The world talks tarifs and trade wars. But there’s a another, quieter threat.

In a post earlier this year Günther Thallinger, Member of Board of Allianz SE called some climate risked uninsurable and warned that we are fast approaching a state where insurers are no longer able to cover many climate risks.

The economic impact of the climate crisis isn’t about future predictions anymore—it’s happening now.

When insurers step back, it’s a signal of a systemic risk and that traditional risk management is no longer fit for purpose.

But without insurance also banks can not lend, confidence in investments falls, and as a result both credit and equity investment dries up. 

Entire sectors can become financially unviable. Just think of the property market in wildfire-prone areas in California.

How resilient is your business model—if no one is willing to insure or finance it?

Your competitors are watching trade policy. You should too. 

But visionary leaders are also rethinking risk, resilience, and long-term value creation.

Rita McGrath calls fundamental shifts in the external environment that significantly changes the assumptions your business is built on an 'inflection point'

Its time for some rapid scenario planning and strategic consideration of climate risk. 

How close is your business / industry to the inflection point on climate risk?

Is climate risk on your boardroom agenda yet—or still only in the ESG report?

This post reflects my personal opinion and is not connected to my employer or any affiliated party.