Climate change - the biggest risk multiplier for the insurance industry

There can be little argument about 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. With Net Zero commitments now a reality, from a corporate perspective, insurers need to define their own Net Zero strategy, sustainability policies, and the steps they are taking to achieve it.


Moody's Analytics have examined the challenges climate risk presents to insurers and introduced the concept of an integrated ESG-C Risk Assessment Framework. It provides insurers with a model to think about and address the challenges arising from Climate Risk.

Climate risk remains a top priority for insurers today, but a practical and forward-thinking approach based on a comprehensive risk assessment framework shows that it is possible to incorporate climate risk management into the heart of the business.

Moody's Analytics Climate Risk for Insurers whitepaper can be downloaded below. It focuses on a selection of climate risk topics:

  • Climate change – the biggest risk multiplier for the insurance industry
  • Constructing Climate Pathway Scenarios to Assess the Financial Impact of Climate Risk
  • Incorporating ESG into P&C underwriting
  • Climate aware Own Risk Solvency Assessment
  • Incorporating Climate Risk into Strategic Asset Allocation
  • Exploring the Impacts of IFRS Sustainability Disclosure Standards on Insurers

Download Whitepapers

Moody's Analytics can also help life insurers develop an understanding of the financial impact of climate risk through the Climate Pathway Scenario Service. The service offers a guided, step-by-step approach to help insurers develop their scenario capabilities. It provides the essential building blocks to operationalize scenarios in decision making and to meet regulation and disclosure requirements.

Built on award-winning scenario generation software, the Climate Pathway Service translates climate pathways into an insurer's financial risk variables to help them assess their climate-related risks and anticipate the future impact of climate change on asset and liability projections. Read more and arrange a conversation with the experts.