Climate change continues to drive the agenda, even during the global pandemic of COVID-19. In this series of papers, we examine the challenges climate risk presents to insurers and make the case for immediate action.
In the last year we’ve seen extreme weather events around the globe with their associated financial impacts, commitments to Net Zero from countries and corporates, increasing levels of regulatory oversight and world leaders gathering at COP26.
There can be little argument with the scale of the challenge that the world faces from climate change, and insurers are no different. In fact, insurers face a complex challenge because climate change risk affects both sides of the balance sheet, namely assets and liabilities. Furthermore, their position in the financial ecosystem places them firmly at the center of the storm but also with a unique opportunity to develop sustainable business models and influence those around them