Geneva Association outlines insurers’ role on climate change
Insurance sector innovation can play a major role in mitigating climate change, according to Swiss-based researcher the Geneva Association.
Climate change experts last week released a report outlining insurers’ role in dealing with the phenomenon, in collaboration with insurance executives.
“Insurance is not only a tool for addressing the immediate risk assessment and risk management challenges before us; it can be a powerful mechanism to discover and incentivise the right behaviour, ” the report says.
It calls on insurers to encourage adaptation by pricing risk to acknowledge energy efficiency and fire and flood mitigation on personal lines. It also called for insurers to recognise climate adaptation measures undertaken at the commercial level.
“Leadership in handling climate change issues will improve insurance economics as well as reduce reputation risk,” the report states.
The report calls for a stronger climate partnership between insurers and governments and more assistance for developing countries through measures such as catastrophe bonds and index-based weather risk transfer arrangements.
Climate change experts last week released a report outlining insurers’ role in dealing with the phenomenon, in collaboration with insurance executives.
“Insurance is not only a tool for addressing the immediate risk assessment and risk management challenges before us; it can be a powerful mechanism to discover and incentivise the right behaviour, ” the report says.
It calls on insurers to encourage adaptation by pricing risk to acknowledge energy efficiency and fire and flood mitigation on personal lines. It also called for insurers to recognise climate adaptation measures undertaken at the commercial level.
“Leadership in handling climate change issues will improve insurance economics as well as reduce reputation risk,” the report states.
The report calls for a stronger climate partnership between insurers and governments and more assistance for developing countries through measures such as catastrophe bonds and index-based weather risk transfer arrangements.