The challenge and potential implications of climate change have always worried re/insurers. With the issue again at the forefront of global politics, many are also realising the power they have and the moral choices they must make in terms of where they invest. Intelligent Insurer reports.
Outside of American politics it’s hard these days to find anyone who seriously believes that global climate change is not real and happening right now.
Re/insurance companies, which have a lot to lose once the bills start coming in from increased losses, were among the earliest firms to start getting concerned about the impact of climate change.
In fact, especially given the industry’s historically low losses in recent years, it is far from clear that climate change will cost the industry more in this way. While the weather is certainly more unpredictable in many parts of the globe, the industry has yet to see this translate into the kind of market-shifting losses that have shaped the industry historically. There are many another aspects of climate change that should, and do, concern re/insurers. One factor increasingly coming to the fore is the implications for the way re/insurers invest their assets. Some are starting to change—partly due to practical and partly due to ethical reasons.
Matt Cullen, ABI, Denis Kessler, SCOR, Standard & Poor's, London, Europe