Property insurers tighten coverage as climate change continues

Climate-driven events are prompting changes in commercial property insurance policy wordings and tighter terms and conditions as insurers try to manage an increase in the frequency and severity of natural catastrophe losses, brokers say. 

How policies define change in temperature and how deductibles and limits are applied are some of the areas where commercial property policyholders are seeing changes, they say. 

Global insured natural catastrophe losses totaled $40 billion in the first half of 2021, according to a report published last week by Swiss Re Institute, part of Swiss Re Ltd. 

Winter storm Uri, which hit swaths of the United States in February, caused estimated insured losses of $15 billion, the highest ever recorded for this peril in the U.S., and accounted for about 38% of all estimated insured losses from natural catastrophes in the first half of the year, Swiss Re said. 

Weather-related events — not just one-off events

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