Global climate risks: how to prepare, prevent and insure against natural disasters
Tennis ball-sized hailstones. That’s how Arjan van Schooten, senior production underwriter at FM Affiliated, opens the conversation—by pulling a frozen globe from his bag. A powerful reminder: international businesses must take climate and natural disaster risks seriously, wherever they operate. We spoke to Arjan and his colleague Ebbo Bierenga, branch manager at FM, about how companies can identify, manage and insure against so-called Catastrophes Naturelles (Cat Nat).
1. What role does fm play in international risk management?
FM is a leading mutual insurance company focused on loss prevention and property risk. With nearly two centuries of experience, FM conducts in-depth risk investigations and applies proprietary global engineering standards. As trusted advisors, they work closely with international insurers and brokers—including Meijers Global & Specialty, to protect complex global operations.
2. What are the main global natural disaster risks?
According to Bierenga, climate and earth-related risks can be grouped into four categories:
- Flooding and extreme rainfall
- Severe hailstorms and wildfires
- Wind events such as hurricanes, typhoons, and tornados
- Earthquakes and landslides, which can also trigger tsunamis
Flood and wind damage remain the most destructive worldwide, but wildfires are intensifying quickly due to global warming.
3. How does fm research and assess these risks?
Van Schooten emphasizes the role of science and data. FM gathers insights from global sources and conducts advanced risk modeling in its research centers. Tools like business impact analyses, training programmes, and online platforms are used to raise awareness and guide businesses through risk mitigation.
4. How can companies protect themselves against cat nat events?
Prevention is key. From constructing custom flood barriers to choosing fire-resistant materials, FM helps companies make critical design and investment decisions. These measures aren’t just practical—they’re often required by insurers.
5. Is it possible to insure against all climate risks?
Not always. Bierenga explains that companies must find the right balance between prevention, risk acceptance and insurance. Sometimes, insurance is too costly or unavailable, making preventive design choices essential—like adapting construction materials or limiting vegetation near buildings. New climate patterns—like polar air affecting regions unprepared for freezing—also require dynamic risk modeling. FM and its partners, including Meijers, continue to evolve with the climate.
Q&A
- What are the most destructive natural disasters globally?
Floods and windstorms cause the most damage, followed by wildfires and seismic events like earthquakes. - How does fm help international businesses prepare?
By offering scientific risk modeling, impact analysis, and expert advice—combined with custom prevention strategies and insurance solutions. - Can you insure against all climate-related risks?
No. Some risks are uninsurable or prohibitively expensive. Prevention and smart risk selection are essential.