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Climate Risk & Insurance

Latest in Climate Risk & Insurance· Oct 29

Aon's CEO warned that insurers lack sufficient capacity to cover concentrated AI data center risks, forcing premium increases that will raise financing costs for developers and slow infrastructure buildout. The constraint stems from sparse historical loss data on a rapidly scaling asset class, leaving underwriters unable to price risk confidently. If insurers tighten coverage terms or spike premiums, capital flows to data center construction will contract, rippling through real estate and technology spending.

Insurance industry responses to climate-related hazards, coverage gaps, and the growing uninsurability of properties in flood-prone and disaster-vulnerable regions.

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