Brokers want the insurance industry and Federal Government to help them educate their clients on the risks associated with climate change, according to a Zurich report on the topic released at the National Insurance Brokers Association (NIBA) Convention on the Gold Coast today.

“Brokers are looking to the insurance industry, second only to the Government, to help educate them and their customers,” according to the report, which was prepared with the logistical assistance of NIBA.

“Brokers have a base of understanding but are asking for more information to guide their discussions with clients,” the report says.

Zurich invited 7500 brokers to undertake an online interview, of which 610 responded – a figure slightly below last year’s survey response.  

According to the survey report, 35% of brokers strongly agree the industry can play an important role in helping the community deal with climate change, while 46% mildly agree with the statement.

Only 7% strongly disagree with the industry playing any role in helping the community on the topic.

Again most brokers (83%) believe the industry has the ability to change behaviour and policies, while 85% believe climate change will create new opportunities for the industry.

Many brokers (84%) want the industry to adapt and price policies to cover climate change while only a small number (7%) strongly disagree with the move.

When asked who should lead the education process on climate change, 83% of brokers thought it should be government, down 4% on last year’s response.

Just over half of brokers (55%) thought insurance companies should lead the education process, while 48% thought it should be environmental organisations. Only 47% of brokers through they should play the leading role.

The survey found a small number of brokers (15%) had started activities to help understand the risks facing their clients.

It says 31% of brokers working in the large corporate segment and 20% of principal/owner brokers have made a start on understanding the risk their clients are facing with climate change.

But this was offset by 48% of brokers having no plans to understand the impact of climate change, with the majority of the principal/owner segment (57%) taking no action.

On the positive side, one in four brokers have discussed climate change as a potential source of increased risk with clients.

Again the large corporate client segment is leading the way with broker discussions (38%), while 33% of principal-owner brokers also talks on the risks.

The survey found one in five brokers reported they had helped clients cope with climate change risks, and again the large corporate segment (25%) is leading the way.

But when it comes to brokers having enough knowledge to talk about client change with their clients, only 3% say they feel “very confident” about the topic.

The bulk of brokers (68%) say they feel confident talking about climate change while 9% believe brokers don’t have a role to play at all.