A top insurer has warned that the climate crisis is on track to destroy capitalism due to the vast cost of extreme weather impacts. Allianz SE, one of the world’s biggest insurance companies, says it will no longer be able to offer cover for many climate risks if global temperatures rise above 2.2C and 3.4C.
The warning comes as global carbon emissions continue to rise, with current policies predicting a significant increase in global temperature. Insurers say that without insurance, other financial services become unviable, affecting mortgages, investments, and infrastructure.
Günther Thallinger, chair of Allianz SE’s investment board, says the only solution is to cut fossil fuel burning or capture emissions. He warns that if governments cannot provide financial bailouts after a disaster, it will be impossible to adapt to many climate impacts.
Thallinger states that at 3C of global heating, climate damage cannot be insured against, covered by governments, or adapted to. This would lead to a collapse in the financial sector and capitalism as we know it. Insurers are now taking action, with Zurich saying it is “essential” to hit net zero by 2050.
Experts say that the insurance sector is a canary in the coalmine when it comes to climate impacts. The warning from Allianz SE must be taken seriously, particularly in countries vulnerable to climate change.
Source: https://www.theguardian.com/environment/2025/apr/03/climate-crisis-on-track-to-destroy-capitalism-warns-allianz-insurer