The Geneva Association: Insurance Industry Taking Action in Addressing Climate Change, Although External Hurdles Remain
The insurance industry is contributing significantly to building socio-economic resilience to climate change and supporting the transition to a low-carbon economy in their role as risk management experts and investors, although a number of challenges are hindering the industry’s efforts to scale up its contribution, according to a new research report from The Geneva Association, the leading international think tank of the insurance industry.
The report ‘Climate Change and the Insurance Industry: Taking Action as Risk Managers and Investors’ is based on interviews with 62 C-level executives of globally active insurance and reinsurance companies, and offers insights into the role of the insurance industry in addressing climate change adaptation and mitigation.
Anna Maria D’Hulster, Secretary General of The Geneva Association, commented: “The study has confirmed that climate change is a topic that has made its way up to the boardrooms of the insurance industry, although insurers are neither the polluters nor the policy setters. Study participants reported initiatives in three aspects of the business: firstly, the liability side, where the industry already offers specialised risk transfer solutions that address the financial consequences of climate change; secondly, the investment side, where insurers increasingly integrate climate change considerations into their investment strategies; and thirdly, the operational side, where companies are reducing their carbon footprint.”
However, external hurdles hinder the expansion of the insurance industry’s contributions to climate change adaptation and mitigation. For example, the expansion of effective risk transfer solutions is currently impeded by limited access to risk information and lack of incentive to take up insurance due to post-disaster government aid. Additionally, the scaling-up of green investments is inhibited by factors such as a limited capacity of relevant markets to accommodate large-scale portfolio allocations, a need for well-defined asset classifications, and fragmented climate policy and regulatory frameworks.
Furthermore, executives interviewed indicated that climate resilient and decarbonised critical infrastructure represents an opportunity that poses specific challenges for the insurance industry. Insurance companies require risk data to assess such infrastructure projects throughout their lifecycle—from design and construction to operation and maintenance. Additionally they require a stable regulatory and political framework, a robust pipeline of opportunities, and an efficient market.
Dr. Maryam Golnaraghi, Director of The Geneva Association’s Extreme Events and Climate Risk research programme, commented: “Failure to address climate change has been identified as one of the highest potential socioeconomic risks to our society. Building resilience to climate change requires proactive risk management and adaptation strategies, and transitioning to a low-carbon economy needs to align governments and the private sector. The insurance industry plays a crucial role in building resilience and fostering economic and entrepreneurial pathways that address climate change.”
The Geneva Association is putting forward three recommendations to accelerate the contributions of the insurance industry to address climate change:
Recommendation 1: Third party stakeholders such as governments, policymakers, standard setting bodies and regulators across sectors work in a more coordinated fashion to address key barriers that hinder insurers from scaling up their contribution to climate adaptation and mitigation.
Recommendation 2: The insurance industry should continue to institutionalise climate change as a core business issue, expand its contributions towards building financial resilience to climate risks and support the transition to a low-carbon economy by collaborating with governments and other key stakeholders.
Recommendation 3: Governments and the insurance industry should explore ways to support climate resilient and decarbonised critical infrastructure through the industry’s risk management, underwriting and investment functions.
The core of the report is based on interviews with Chief Executive Officers, Chief Risk Officers, Chief Investment Officers and Chief Underwriting Officers from 21 globally active insurance and reinsurance companies, with total assets under management exceeding USD 4.7 trillion and a total premium volume in excess of USD 550 billion in 2016.
Research brief: Climate Change and the Insurance Industry
Interviews with the author at The Geneva Association YouTube channel
The Geneva Association
Director of Communications
+41 44 200 4906
+41 44 200 4996
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
IDEMIA and Octo Telematics Reinvent Car Sharing Experience by Adding Facial Recognition to EasyOpen Solution23.2.2018 15:57 | Pressemelding
IDEMIA, the global leader in Augmented Identity for an increasingly digital world, announces today that it has implemented facial recognition technology on EasyOpen, a solution previously developed with its partner Omoove, a wholly-owned Octo Telematics company, Europe’s leading Shared Mobility technology provider. The digital enrolment process combined with facial recognition technology will securely enroll and authenticate the driver before EasyOpen automatically opens the car. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180223005506/en/ (Photo: Idemia) You will never rent a car the same way thanks to EasyOpen solution that combines IDEMIA’s expertise in secure service enablement and Omoove’s experience in Shared Mobility platforms and on-board technology. The first version of the solution was launched last year and allows drivers, who have already registered on the application, to use their smartphones as a key to open
SM-Optics Unveils First FLEXSET Chip, Paving the Way to Optical Micro Nodes23.2.2018 14:00 | Pressemelding
SM-Optics launches FLEXSET, a single chip embedding multiple processing functionalities raising the bar for performances, density and architectural flexibility. The FLEXSET is the heart of the Lightmode product family. FLEXSET OTN switching matrix scales from 300Gbps to 1Tbps and can be addressed by ports spanning from traditional low-speed services like 2Mbps over micro-OTN, to layer2 and layer3 over ODUFlex, 100G over ODU4 and 200G over FlexO. Thanks to its embedded capabilities including multi-technology OAM, packet processing, synchronization and fast protection functions, FLEXSET operates by design at the lowest latency performances and features an Intel Stratix 10 FPGA. Following the launch of micro-OTN, a revolutionary approach to efficiently extend OTN protocol to low speed services, the launch of FLEXSET advances the vision of a highly interconnected metro network and of micro nodes. Revolving around functional block elements, micro nodes collapse in few rack units OTN and pho
Bitcoin Miner HashGains’ Crowdsale to Build Green Cloud Mining Data Centers Receives Excellent Response23.2.2018 13:56 | Pressemelding
HashGains.com, a leading cryptocurrency mining platform, has launched its crowdsale program to build mega cryptocurrency cloud mining data centers in India and Canada which uses renewable energy like wind and solar as source of energy. “With the growing worries around bitcoin mining causing environmental damage, difficulty levels of mining increasing and returns heading southwards, there was no better opportunity but to build green energy data centers which run on free sources of energy like wind and solar, ensuring handsome mining rewards while taking care of environment,” said Mr Anuj Bairathi, CEO & Founder, HashGains, who is crypto enthusiast himself. HashGains is a growing cloud mining platform with more than 10,000 active customers enjoying mining returns and is expected to reach the mark of 1 million customers by 2020. To handle such a massive growth and ever growing demand of customers, it becomes even more important that mega mining centers are planned which can serve needs of
Stratecast Recognizes CARDINALITY as a “10 to Watch in 2018”23.2.2018 13:07 | Pressemelding
In their new report, “Digital Transformation Means New Tools for New Business” —part of the Global Operations, Orchestration, Data Analytics, and Monetisation (ODAM) stream—Stratecast recognises CARDINALITY for their new approach towards processing big data to deliver applications such as Customer Experience, Operational Intelligence, Network Analytics, Churn Management and Marketing Intelligence. Stratecast identified that the CARDINALITY Perception Platform brings large amounts of data from multiple CSP sources together in order to address a growing group of data analysis needs from different operational work teams and the wider business. It also does this at ingestion rates and storage levels previously thought not practical. "Using design principals tied to microservices and containerized solution components, the platform is a major advancement in meeting CSP data analysis needs at a price untouchable by previously-defined platforms," said Karl Whitelock, Stratecast director of glo
IBC2018 Welcomes Channel 4’s Keith Underwood as Guest Chair of Content Steering Group23.2.2018 11:03 | Pressemelding
IBC is thrilled to announce that Keith Underwood, Director of Strategy and Technology at Channel 4, has accepted the role of Guest Chair of the Conference for IBC2018. The position involves acting as the figurehead and brand ambassador for IBC, setting the vision for the programme and increasing awareness and engagement with IBC across both traditional and converging media markets. Keith is the Channel 4 Executive Committee member responsible for strategy and corporate development, broadcast operations, content management, corporate systems and the development of Channel 4’s digital products. His achievements at the public broadcaster include the launch of All 4, Channel 4’s award-winning video on demand service that replaced 4oD in 2015. “The media industry is experiencing profound shifts in consumer behaviour, competitive dynamics, and technological innovation.” Keith Underwood said. “Relentless disruption of established business models presents new opportunities and challenges for p
SES S.A.: Full Year and Fourth Quarter 2017 Results23.2.2018 07:00 | Pressemelding
SES S.A. announced financial results for the year and three months ended 31 December 2017. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180222006522/en/ Full Year and Fourth Quarter 2017 Results (Photo: Business Wire) Key financial highlights Reported revenue EUR 2,035.0 million, down 1.6% (-5.2% like-for-like(1)); SES Video -3.6%(1) and SES Networks -1.9%(1) EBITDA margin 65.1% (2016: 70.2% as reported and 66.7% like-for-like(1)) Net profit of EUR 596.1 million (2016: EUR 962.7 million including EUR 495.2 million gain related to O3b consolidation) Board is proposing 2017 dividend per A share of EUR 0.80 (2016: EUR 1.34) Change (%) Change (%) EUR million FY 2017 FY 2016 Reported Like-for-like (1) Q4 2017 Q4 2016 Reported Like-for-like (1) Revenue 2,035.0 2,068.8 -1.6% -5.2% 507.8 578.7 -12.2% -8.7% EBITDA 1,324.2 1,451.5 -8.8% -7.6% 329.6 390.6 -15.6% -12.2% EBITDA margin 65.1% 66.7%(1) 64.9% 67.6%(1) Operating profit (2) 6