A recent risk assessment by Swiss Re reveals that rising temperatures and plastic pollution are becoming significant threats to companies and insurers. Heatwaves, mold growth, and plastic waste are driving up legal and financial risks, particularly in sectors like insurance, agriculture, and healthcare.
Heat-related damage is increasing property, health, and workers’ compensation claims. Insurers are retreating from high-risk areas like California, where wildfires and heatwaves are becoming more frequent. The growing presence of microplastics in food and human bodies is also raising liability concerns, with potential long-term health effects still poorly understood.
“With a clear trend to longer, hotter heatwaves, it is important we shine a light on the true cost to human life, our economy, infrastructure, agriculture and healthcare system,” said Jérôme Haegeli, group chief economist at Swiss Re. Heatwaves are now the deadliest weather threat in the U.S., straining power grids, damaging crops, and spreading heat-loving molds that can sicken people and destroy buildings.
The insurance market is already shifting in response to these risks. Major providers are either retreating from fire-prone regions or increasing premiums. The spread of microplastics is creating a new frontier of liability risk for businesses, particularly those involved in fossil fuel production and plastic manufacturing.
Key Risks Emerging from Climate Change and Plastic Pollution
- Increasing heat-related damage and associated insurance claims
- Growing presence of microplastics in ecosystems and human bodies
- Rising liability concerns for companies, particularly in fossil fuel and plastic production
- Shifting insurance markets with increased premiums or withdrawal from high-risk areas
The costs of fossil fuels are becoming increasingly evident in terms of dollars, public health, and legal exposure. As scientists continue to track the spread of microplastics and courts weigh company responsibility, businesses face growing risks tied to pollution they once considered external.
