Climate risks making insurance unaffordable

RISING losses from climate-related disasters are making insurance policies unaffordable around the world, with many vulnerable households being priced out as insurance premiums rise faster than incomes, according to the Allianz Group’s economic research team. The “Allianz Global Insurance Report 2026” said climate change is widening insurance protection gaps, as insurers face growing losses from natural disasters, higher costs, and weaker household spending power. “Climat