As climate impacts increase, the insurance industry will need to shift its approach to consider climate damages and engage with communities.
Insurers and re-insurers work in a collaborative way with governments and public FIs to manage coverage in a way that can close critical coverage gaps, price climate risk accurately, and simultaneously manage premium prices.
Position insurance as a fiscal resilience tool that channels private finance into predictable, shock-absorbing resources for governments, strengthening budgets and stability.
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The insurance industry holds a pivotal role in the adaptation finance ecosystem.
Climate change is partly responsible for a recent surge in insurance premiums and costs are mounting at the same time that regulatory conditions are making it challenging for insurers to make efficient decision about coverage (e.g., CA).
Low levels of insurance penetration in emerging economies (especially Africa) mean that economic losses from weather-related disasters are not yet reflected in credit and insurance portfolios.
Cooperation is required between these actors and audiences to drive progress foward in Shifting Insurance Models.
Publications and educational material to deepen understanding of Shifting Insurance Models.
The disaster risk reduction (DRR) Working Group has the main objectives of increasing focus on DRR as a complement to protection gap solutions to increase resilience of vulnerable communities, giving more visibility to the role of insurance in disaster risk reduction.
Insurance enables economic activity by protecting assets and de-risking investments in renewables, low-carbon technologies and climate-resilient infrastructure. Through underwriting, pricing, claims management and broker engagement, insurers can influence clients’ decarbonization pathways and signal risks to high-emitting activities.
This paper examines the contribution of the insurance sector to climate adaptation. It outlines some of the challenges to assessing future climate risks, encouraging policyholder risk reduction and supporting resilient reinstatement.
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