“Climate risk insurance” is a crucial financial tool that is still underutilized, though. Underwriting a future disrupted by climate change is extremely difficult due to the insurance industry's current structure. The insurance industry's readiness should be evaluated based on its willingness to undergo a fundamental evolution rather than its current state. Regulations should incentivize green insurance products and mandate climate-risk disclosure. The industry as innovator, not just seller: Insurers must invest in technology and design simple, accessible, and affordable products, including index-based crop insurance, catastrophe bonds for municipalities, and health insurance products that address climate induced disease outbreaks.

Source: Dhaka Tribune February 03, 2026 09:30 UTC