The World Wildlife Fund (WWF) has criticised insurers IAG, QBE and Suncorp for not meeting international benchmarks for disclosure about the impact of global warming and for failing to advocate stronger action on climate change.

WWF Australia Business Engagement Manager on Climate Change Monica Richter says local insurance consumers are being “left in the dark”.

A new WWF report examines publicly disclosed policies and statements on global warming from the three insurers and compares them with overseas counterparts Axa, Allianz and Prudential.
 
“Australian insurance companies are falling behind the rest of the world when it comes to publicly disclosing their positions on global warming and how they are managing climate-related risks,” Ms Richter said.
 
WWF says that, unlike their overseas peers, none of the Australian insurance companies have public climate change statements in their annual reviews or sustainability reports. 

“Global warming will have significant impacts on the insurance industry through increased claims, reputational damage, decline in insurance affordability and an increase in uninsurable sectors or geographies,” Ms Richter said.

“Without full public disclosure of their climate-related risks and management strategies, Australian consumers and shareholders are left vulnerable to unexpected costs and regulatory shifts.”

The Australian insurers do not disclose low-carbon investment targets or statements around divestment in carbon-intensive companies or products.
 
“We are urging Australian insurance companies to do the right thing by their customers and shareholders by improving their public disclosure of climate change risks and costs, as well as advocating for stronger climate action,” Ms Richter said.

Insurance Council of Australia (ICA) CEO Rob Whelan says the insurance industry “closely monitors the climate change debate”.

He argues the industry’s focus is on the need for Australia to become more resilient, through government action, in response to an increasing risk profile caused by extreme weather.

ICA declines to buy into the WWF’s criticisms.

“Investment strategies and statements by publicly listed companies are a matter for those individual companies,” Mr Whelan told insuranceNEWS.com.au.

“ICA continues to talk to all levels of government about investing in permanent mitigation for flood-prone communities and introducing measures that will improve the resilience of buildings in high-risk areas for cyclones and bushfires.”

Suncorp says it recognises that an increase in the frequency and severity of natural hazard events has had an impact on the community and its insurance business.

During the past year it has “actively promoted” change for the benefit of consumers.

“Our general insurance business is publicly advocating for greater investment in natural disaster mitigation to better protect property and communities, while addressing affordability issues by reducing the risk,” a spokesman told insuranceNEWS.com.au.

Suncorp has set up its Protecting the North webpage to explain its program to reduce risk and insurance premiums in cyclone-prone communities. Its focus is on mitigating or reducing the damage cyclones cause to houses, “which is the best way to reduce insurance costs to homeowners”.

QBE declined to comment, and IAG was unable to respond to insuranceNEWS.com.au’s questions by publication time.