"Insurers do have a role to play in mitigating climate change. In addition to the choices around how our assets are invested and underwriting options, we can have influence over the supply chain and the value chain"
"It's clear climate change is a systemic risk in the long term, but it's hard to predict the impact of climate on an entire financial system because it's so dependent on model assumptions"
These quotes from Climate Strategy and Modelling, a special free to download report from InsuranceERM and insurance software and technology provider, FIS, sum up just two of the many challenges for insurers as they plot a path to net-zero emissions.
While the insurance sector should contribute to limiting global warming to 1.5°C, figuring out how climate risk might affect the business – and thinking about the appropriate response – is fraught with difficulty.
This special report shares some of the approaches the sector is taking to regain climate leadership. It comprises four articles:
- a roundtable discussion with representatives from Aviva, Generali, FIS, Phoenix, Vitality and Zurich on their approaches to understanding climate risk, and how they are positioning themselves on the journey to net-zero
- FIS explains how insurers can lead the way on climate risks, and the growing expectations for scenario testing and reporting
- a report on insurers' experience with TCFD reporting, with comments from Axa, Marsh McLennan, Phoenix and Zurich
- a report on how catastrophe modelling experts are considering climate change in their work, with comments from PwC, RenaissanceRe, Swiss Re and TransRe