IAG CEO Mike Wilkins and Suncorp CEO Patrick Snowball are among 66 global executives to sign a Geneva Association statement highlighting the role insurance can play in tackling climate-related risks.

Other signatories include Lloyd’s CEO Inga Beale, AIG CEO Robert Benmosche, Catlin Group CEO Stephen Catlin, Berkshire Hathaway President Ajit Jain, Ace CEO Evan Greenberg, Swiss Re CEO Michel Lies and Munich Re Chairman Nikolaus von Bomhard.

Axis Capital Chairman Michael Butt, who co-chairs the association’s climate risk and extreme events working group, says the statement gives a reference point for how insurance can complement global efforts to mitigate and adapt to global warming.

“Our industry can make a considerable contribution to global efforts to reduce the impact of climate change, but reaching its full potential will require greater collaboration with governments and global governance bodies such as the United Nations,” he said.

Businesses run by members of the Geneva Association – an insurance think-tank – have gross written premium of more than $US2.1 trillion ($2.3 trillion) and headquarters in 27 countries.

The statement includes general commitments to research and development of products to promote mitigation efforts.

“We encourage political processes to work towards a better understanding of the potential costs of climate change and the advantages of market-based solutions,” the statement says.

Mr Butt says political responses tend to take a short-term approach to extreme issues, whereas the insurance industry has a longer-term perspective.

“We now have statistics to show it is infinitely cheaper to take preventative measures than it is to post-event fund for governments and for the industry, so we need to persuade more people of that and to get more pre-funding rather than post-funding of losses.”

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