Insurers around the world are already making major investment commitments to counter climate change and enhance resilience, according to the International Insurance Society. 

Its President and CEO, Michael Morrissey, told a United Nations forum in New York last week the global insurance industry has about $US35 trillion ($49.27 trillion) of invested assets.

“The insurance industry has significant discretionary investment capital that can be directed towards clean energy, mass transportation, food and water security, agriculture, disaster preparedness systems and resiliency enhancements, in both fixed-income and equity investments,” he told the meeting, which was also addressed by UN Secretary-General Ban Ki-moon, campaigner Al Gore, politicians and leading investors.

“These are not acts of charity or corporate social responsibility. They are investments that stand on their own as providing an adequate return.

“An evolved attitude about allocation of investment funds that considers climate solutions as an asset class, or at least an area of specific focus, would benefit both the industry and the world whose sustainability it requires to thrive.”

He says insurers are best positioned to make the investments a clean-energy world needs, because of their long-term liability structure and lower liquidity needs compared with other kinds of asset pool.

“Many exciting opportunities exist for insurers to also use their risk assessment, pricing, transfer and advisory capabilities to help build a more resilient world.”