Bermuda market executives were in Paris for the Organisation for Economic Co-operation and Development’s working party discussion on insurance and private pensions.

During Financial Markets Week, the group reviewed an agenda item about building financial resilience to floods, fires and other large-scale catastrophic risks.

Discussions focused on how to better manage the financial impacts of climate change, digitalisation and socioeconomic trends, which are increasing the frequency and severity of such events.

The group heard evidence that when it comes to a disaster risk management, many countries underinvest in prevention compared to response.

By advancing these topics, the OECD seeks to address the growing public policy challenge of financing the massive costs associated with both natural and human-caused catastrophic risks.

Participants discussed methods to strengthen risk management, the financing of disaster risks, climate-related risks and the role of insurance and other forms of financial protection in reducing vulnerability and supporting economic recovery after a catastrophe.

The working party highlighted that the most sustainable way to reduce disaster impacts over time is through investments in risk reduction, climate adaptation and resilience-building measures.

This work builds upon the OECD's broader initiatives and previous recommendations on financial resilience, including updates to guidance on disaster risk financing strategies.