Authors: Shahla Nigar
Abstract: For property insurers, underwriting has evolved from actuarial pricing into a multidimensional calculus of climate risk, portfolio sustainability, and systemic resilience. Based on a structured review of 80 scholarly sources, this paper identifies four strategic imperatives: (1) modernizing risk assessment with forward looking climate models, IoT monitoring, and deep learning; (2) innovating hybrid indemnity parametric products that reduce basis risk and incentivize mitigation; (3) building capacity through public private risk pools, catastrophe bonds, and development finance to close protection gaps; and (4) aligning portfolios by reviewing exposure to high-carbon assets and transition risks. InsurTech investments in AI underwriting, satellite analytics, and blockchain claims significantly reduce loss ratios and enable expansion into previously uninsurable segments. Long term profitability and solvency depend on embedding climate scenarios into capital allocation, institutionalizing cross-sector collaboration, and redefining insurers from reactive indemnifiers to proactive architects of resilience.
