Key Takeaways
Summary
Climate change indirectly influences civil unrest, terrorism, and armed conflicts, posing threats to international security. Its impacts include disruptions in supply chains, increased demand for climate peril and political risk insurance, and exacerbated food and water shortages.
By 2030, fresh water demand is projected to exceed supply by 40%, and by 2050, climate change could force 216 million people to migrate within their own countries. Businesses must integrate climate risk assessments into their continuity planning to mitigate these threats effectively.
Facts and figures
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Food Insecurity and Water Crisis
250 mio people in 58 countries faced acute food insecurity, by 2030, fresh water demand is projected to exceed supply by 40% due to climate change.
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Migration Due to Climate Change
By 2050, climate change could force 216 million people in six regions to migrate within their own countries, highlighting the social impact of environmental shifts.
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Impact on Insurance Demand
Climate change is expected to increase demand for insurance covering climate-related perils (drought, flood, cyclones), political risk, and strike, riot, and civil commotion, although actual increases in civil unrest could challenge the insurability of such risks.