A recent survey conducted by Marsh, a global risk management and insurance brokerage firm, has found that 43% of participants in Egypt have experienced losses or disruptions due to extreme weather events over the past three years. This reflects the growing impact of climate-related risks on businesses, shifting from a potential future threat to a current reality affecting performance and continuity. The survey, part of Marsh's 2026 Climate Adaptation Survey, highlights the need for companies to assess and manage climate-related risks proactively.
The survey also revealed that 60% of respondents have faced multiple climate-related risks, indicating that companies are no longer exposed to a single risk, such as floods or hurricanes, but rather a complex set of risks that can affect multiple aspects of their operations, including locations, supplies, transportation, energy, and production. This has significant implications for the insurance sector, as the increasing frequency and severity of natural disasters require more accurate risk assessments and tailored insurance coverage.
Marsh noted that companies are taking steps in the right direction by evaluating a broader range of climate-related risks, extending beyond their direct assets to include the systems and supply chains they rely on. However, the main challenge lies in translating this risk assessment into proactive measures to mitigate losses. The survey's findings are particularly relevant for Egypt, where climate-related risks are becoming increasingly prominent.
The Marsh survey also highlighted that companies are beginning to expand their climate risk assessments to include not only their owned assets and facilities but also the systems they depend on, such as infrastructure, energy, and transportation networks, and supply chains. This means that the disruption of a supplier, transportation network, or power outage due to severe weather can result in losses for a company, even if its physical assets remain undamaged.
According to Marsh, 2026 presents an opportunity for companies to bridge the gap between risk assessment and concrete adaptation actions, particularly as the cost of damages from extreme weather events continues to rise. Managing climate-related risks involves more than just purchasing insurance policies; it requires a combination of prevention, risk reduction, and transferring residual risks to insurance and reinsurance companies.
Effective climate risk management, as per Marsh, involves understanding physical and transitional risks, measuring their impact on business, and implementing measures to enhance the resilience of facilities and supply chains. The survey's results coincide with other research indicating that more companies are starting to disclose climate adaptation plans, although detailed plans tied to specific locations and assets remain less common.
Marsh is a global company specializing in risk management, insurance brokerage, reinsurance, and consulting, serving clients in 130 countries, employing over 95,000 staff, and generating approximately $27 billion in annual revenue as of 2025. The company's insights underscore the need for Egyptian businesses to prioritize climate risk management and adaptation strategies to mitigate the growing threats posed by extreme weather events.
Key points
- 43% of Egyptian companies have faced losses or disruptions due to extreme weather events over the past three years.
- 60% of respondents have faced multiple climate-related risks affecting various aspects of their operations.
- Companies must bridge the gap between climate risk assessment and proactive adaptation measures to mitigate losses.
