Investor Presentaiton

Role of insurers-climate risk is not just for corporates Insurers have a unique role in the global effort to mitigate and adapt to climate change: ✓ Providers of risk protection ✓ Major investors managing c.$30 trillion of assets Are new approaches to risk protection require? • History is no longer a reliable guide to pricing risk ... 1-in-100 event in the 1960s is now a 1-50 year event ... could be even more frequent in the future Insurers drop almost 350,000 California homeowners in high- fire risk areas • Potential for risk mispricing arises Consider, a top Physical Risk ... the risk of flooding • Impacts people's homes and businesses, with devastating impacts on communities • Not just emotional distress associated with damage and loss, there are also financial costs . • Underinsured to flood risk, flood events can cause losses for homeowners • Reduces ability to repay loans ... damaging the value of the property • Quality of the loan portfolios of banks/insurers 136,000 homes destroyed 15m total housing stock; only 15% insured for flaoding KPMG © 2020 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 40

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