The drop in commodity prices, uncertainty in financial markets, volatile capital flows, subdued external demand and geopolitical influences, coupled with the refugee crisis, have been some of the major headwinds adversely impacting global economic developments. Unfortunately, these factors will continue to have a bearing on the economic outlook for both emerging market economies and the global economy as a whole.
These risks have an impact on the environment in which the non-life sector operates, the financial system at large and the economy. Thus, understanding climate-related risks and opportunities will help us highlight the areas where the non-life insurance sector can play a crucial role in helping to protect livelihoods, and enhance the resilience of the financial system.