Companies should have to disclose natural disaster risks in the same way they do threats from currency movements and regulatory changes, Willis Group CEO Dominic Casserley says.

Increasingly violent and frequent weather events are affecting communities and businesses, particularly in urban areas with rising populations, he told the International Insurance Society’s annual seminar in London last week.

“These risks are material for many companies, leading to concerns about the future and less confidence to invest and create jobs,” he said.

Investors also need the information to make informed judgements. “Yet some of today’s most important risks are completely absent from their mindsets.”

Mr Casserley says the insurance industry has grown smarter about understanding, pricing and sharing expertise on risk. Better disclosure will bring improved valuations and pricing for capital.