Climate change is increasingly shaping the travel insurance landscape in the APAC region, as rising temperatures, extreme weather events and natural disasters become more frequent and severe.
What is even more concerning is the growing occurrences of air turbulence in aviation, with climate change contributing to increased frequency and intensity of clear-air turbulence; sudden jolts that occur without visible weather cues and sudden bird activity.
Singlife senior vice president for general insurance Alvino Kor said one notable example is clear air turbulence (CAT), which occurs without visible warning and is undetectable by onboard radar.
“CAT is a kind of strong, sudden shaking that aircraft can experience while flying at high altitudes. This type of turbulence is becoming more common due to climate change, which intensifies the temperature contrast between warm and cold air masses,” Mr Kor said.
When asked if insurers are updating their underwriting models to reflect the rising risks from extreme weather events in aviation, Mr Kor affirmed that insurers are updating their underwriting models to account for the growing risks associated with extreme weather, particularly in aviation and travel.
Underwriters are now incorporating advanced climate data and predictive analytics to more accurately price aviation coverage and assess exposure. This shift aims to ensure long-term sustainability of coverage while helping airlines and travellers better prepare for the operational and financial challenges posed by a changing climate.
“Other than the traditional historical models, insurers may also incorporate more forward-looking approaches that include climate science, satellite data, and AI-powered analytics to better assess climate risks and make more informed underwriting decisions,” he said.
Mr Kor also said as severe weather events become more frequent and unpredictable because of climate change, there is a growing need for insurers to reassess their risk appetite and policy exclusions.
“We see policy innovation as a continuous process, not only in the benefits we offer, but also in how we define coverage boundaries. Reviewing exclusions plays an important role in ensuring customers remain meaningfully protected, while also keeping pace with the realities of a changing climate,” he said.
A more in-depth version of this article will appear in the August issue of the Asia Insurance Review magazine, out on 1 August 2025.