Risk & Opportunity
The insurance industry’s core strength is assessing and determining how to manage Life, Health and Non-Life risks. Sustainability risks are no different.
In certain areas, notably climate, the insurance industry can play a leading role helping other industries understand and act.
Moreover, because of their vital economic role as underwriters and investors, insurers have the ability to significantly influence climate impacting businesses and development initiatives.
The growing threat of climate change poses systemic physical and transition risks, with direct implications for the insurance industry.
To protect against and prevent these risks, insurers will need to develop a deeper understanding of them in their portfolios, rebuild their risk models and pricing assumptions, create new climate-related products and services, work with organisations to help them mitigate climate risks and embed the IFRS 17 accounting and reporting standards to reflect the real economic value of the risk carrier.