Insurers' capital supply may struggle to meet demand for coverage

According to analysts at Goldman Sachs Group Inc., the current capital supply in the property insurance and reinsurance markets is expected to struggle to meet the increased demand for climate coverage, Reinsurance News reported. Goldman Sachs said that the higher catastrophe losses arising from climate change may translate into $149 billion to $183 billion of new global property premiums by 2040. The increase in demand is expected to drive pricing higher with the current supply likely insufficient.