Nairobi, April 13 -- Nations are grappling with the emerging climate risks whose economic cost is cumulatively running into trillions of dollars . These are financial, social and environmental losses arising from extreme climate -related loss events such as earthquakes, floods and wildfires.

For the insurance industry, climate risks are undermining existing traditional risk management frameworks that were designed for risks that are predictable with a degree of certainty.

Material gaps in NatCat risk analytics and modelling are also distorting pricing and reserving of these risks leading to insufficient protection. In 2025, according to Swiss Re Institute, NatCat insured losses at approximately $145 billion.

This amount is actually hig...