Freddie Fuller and David Howells of RBC’s European Equity investment team discuss how climate change and rising natural catastrophe losses have reshaped the insurance industry, driving premiums higher and leading investors to seek out diversified, well-managed insurers. Key takeaways: Climate rewires insurance risk: Rising natural catastrophes shift insurance from low-correlation, slow-moving risks to high-correlation, fast-repricing ones, demanding more nimble underwriting and greater diversification. Risks extend beyond insurance: Unaffordability combined with un-insurability could force governments into fiscal backstops, threatening housing markets, mortgage availability, and financial stability. Investors should pick selectively: Climate-driven pricing power helps near term, but lasting winners are scaled, diversified underwriters, not monoliners. Hence, fundamentals matter most.