Adapting the Insurance Value Chain to Catastrophic Risk: toward Sustainable and Equitable Risk Management 2 2

Abstract

This study examines how the insurance industry is adapting its value chain to address the growing frequency and severity of catastrophic risks, particularly those arising from climate change. Using a qualitative approach based on a review of scholarly literature, industry reports, and relevant databases, the study analyses changes across underwriting, claims management, product development, risk management, technology, and investment activities. The findings indicate a gradual shift from reactive to proactive risk management, supported by digitalisation, ESG integration, and sustainable insurance practices. However, challenges such as limited climate data, insurance illiteracy, and communication gaps remain. The study highlights insurance as a key contributor to resilience, sustainability, and inclusive economic growth.