Bermuda’s insurance and reinsurance sector could play a central role in a fast-growing global market for climate adaptation, estimated to reach $10 trillion by 2050, according to a new analysis by a senior adviser at KPMG in Bermuda.

Charlotte Reboul Paradis, senior manager for policy, sustainability and healthcare at KPMG’s Islands Group, said that despite contributing less than 1 per cent of global greenhouse gas emissions, islands were among the most exposed jurisdictions to climate change and were well positioned to develop and export solutions.

After attending the COP30 climate summit in Brazil, Ms Reboul Paradis said the message from governments and investors was increasingly clear: climate adaptation is both a necessity and a major economic opportunity.

She pointed to Bermuda’s advanced insurance and reinsurance market as a strategic advantage, particularly in areas such as parametric insurance, catastrophe bonds and resilience-linked financial instruments that can be deployed globally.

Recent events have shown both the risks and the benefits of preparation. Jamaica suffered losses estimated at more than 30 per cent of GDP following Hurricane Melissa, but also received a payout of more than $90 million through the Caribbean Catastrophe Risk Insurance Facility.

Ms Reboul Paradis said proven, cost-effective adaptation measures already existed, including early-warning systems, which could reduce disaster damage by up to 30 per cent, and nature-based solutions such as mangrove restoration, which offered higher benefit-cost ratios than hard infrastructure alone.

She argued that islands can serve as testbeds for climate technologies but scaling solutions would require more private-sector involvement and innovative financing models.

“Adaptation is not charity,” she said. “For islands, it is smart economics and long-term strategy.”