Rising heat and plastic pollution are increasing business and insurance risks
Heatwaves, mold growth, and plastic waste are becoming costly threats to companies and insurers, driven by fossil fuel use and worsening climate impacts, according to a new risk assessment from Swiss Re.
Justine Calma reports for The Verge.
In short:
- Reinsurer Swiss Re warns that rising temperatures, plastic pollution, and mold pose growing legal and financial risks to businesses, particularly in sectors like insurance, agriculture, and healthcare.
- Heat-related damage — from wildfires to illness and power outages — is increasing property, health, and workers’ compensation claims, as insurers retreat from high-risk areas like California.
- Plastics, made from fossil fuels, are raising liability concerns as microplastics show up in food and human bodies, prompting lawsuits and raising questions about long-term health effects.
Key quote:
“With a clear trend to longer, hotter heatwaves, it is important we shine a light on the true cost to human life, our economy, infrastructure, agriculture and healthcare system.”
— Jérôme Haegeli, group chief economist at Swiss Re
Why this matters:
Heatwaves are now the deadliest weather threat in the U.S., straining power grids, damaging crops, and spreading heat-loving molds that can sicken people and destroy buildings. Insurance markets are already shifting, with major providers retreating from fire-prone regions or hiking premiums. At the same time, plastics are flooding ecosystems and our bodies with micro-sized particles whose full range of health impacts remain poorly understood. As scientists track their spread, and courts weigh company responsibility, businesses face a new frontier of liability risk tied to pollution they once considered external. The costs of fossil fuels are increasingly difficult to ignore — in dollars, in public health, and in legal exposure.
Read more: Extreme weather isn’t the future — it’s already straining budgets and resources
