Investigation of the effects of climate change on the insurance sector in Turkey

While climate change is one of the biggest threats to life on the planet, it is obvious that it will have negative effects on the economic system if necessary precautions are not taken. Climate change is increasing its impact day by day and causes great financial losses. The insurance sector is one of the sectors most affected by the consequences of climate change. Insurance companies need to give importance to research, understanding, risk analysis and risk management in order to reduce the cost they have to bear in case of damage. While climate change is a risk for the sector, it creates new opportunities. It has become a necessity today to carry out studies to minimize the effects of climate change and to raise awareness. Severe effects of weather events caused by climate change; the annual average temperature, the total annual precipitation and the number of extreme events. In this study, the effects of climate change on the compensations paid in the accident branch, sickness/health branch, transportation branch, agriculture branch and fire insurance branches were examined. Claims paid in five branches between 1990 and 2021 and meteorological data were tested with standard unit root tests, structural break analyzes and the relationship between them was determined by ARDL cointegration test. It has been determined that there are significant relationships between the variables. Keywords; Climate change, Global Warming, Insurance, Parametric Insurance