Climate Connections Reinsurance: Meet your insurance company's insurance company
Nov 7, 2025
Michael Quigley, an executive at Munich Re with a deep understanding of reinsurance, sheds light on the critical role of reinsurance in safeguarding insurance companies from catastrophic losses. He explains how this safety net allows insurers to handle massive claims, especially after disasters like hurricanes. Quigley also discusses resilience measures, advocating for improved building codes and better land use planning to mitigate risks and keep insurance premiums manageable. It's a fascinating insight into the unseen backbone of the insurance industry.
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Reinsurance Protects Insurers From Insolvency
- Reinsurance is insurance for insurance companies that protects them from insolvency after major disasters.
- It lets insurers survive when thousands of simultaneous claims would otherwise bankrupt them.
Climate-Driven Disasters Increase Systemic Risk
- Large-scale events like wildfires and hurricanes can flood insurers with claims and threaten their solvency.
- Climate change makes those events more destructive, increasing pressure on reinsurers and the insurance system.
Make Homes Resilient To Lower Insurance Costs
- Some reinsurers are raising rates to respond to higher losses driven by climate change.
- Do focus on making homes more resilient through better building codes and land use planning to control costs and keep premiums affordable.