Himalayan infra projects brace for a climate risk premium
Climate change is making infrastructure in the Himalayas increasingly expensive to insure due to the rising incidents of flash floods, landslides, and glacial lake outburst floods.
The catastrophic Nepal-Tibet floods in August may lead to higher infrastructure insurance costs across the Himalayas, as climate change alters the region's risk profile, according to industry insiders. Insurance rates for roads and bridges surged around 21% following the less severe 2023 Sikkim glacial lake outburst flood (GLOF) disaster, suggesting potential premium increases ahead, insurers and reinsurers are currently evaluating the extent of this potential rise.
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