The potential for financial losses across business and the wider economy may be driven by the physical process of weather and geography, however they are for the most part realised through financial and economic mechanisms. Insurance providers have reacted to recent extreme weather events by changing the cost and scope of the cover they provide.

With this shift a rather interesting challenge emerges, particularly when one considers the potential financial consequences of the combined effects of: changes to insurance; the projected increases in loss creating weather events; and a poorly understood degree of adaptation deficit.

By way of industry case studies this paper explores the combination of financial risk management and the power of climate modelling in assisting to develop new approaches to protecting value of both individual businesses and of the wider regional economy.