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Climate Crisis Threatens Global Financial Stability, Warns Experts

1/22/2025

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Summary

Story summary

The Financial Stability Board raises alarms about the looming threat of climate change, warning that extreme weather events could shake global financial markets. With temperatures soaring over 1.5°C above preindustrial levels, the frequency of devastating floods and wildfires is escalating. Alarmingly, nearly 62% of 2023 disaster losses remain uninsured, pushing regulators to rethink how to bolster the resilience of the insurance market.

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Story summary

The Financial Stability Board raises alarms about the looming threat of climate change, warning that extreme weather events could shake global financial markets. With temperatures soaring over 1.5°C above preindustrial levels, the frequency of devastating floods and wildfires is escalating. Alarmingly, nearly 62% of 2023 disaster losses remain uninsured, pushing regulators to rethink how to bolster the resilience of the insurance market.