Weathering the climate change storm: How insurers are moving towards risk resiliency

As natural catastrophes and climate change impacts surge around the world, climate risk urgency has escalated for Property and Casualty (P&C) insurers struggling to underwrite profitability because of increased loss costs.

The global increase in insurability issues has put a spotlight on the coverage crisis, which mandates reinsurers and bond market capital support. Fortunately, resourceful insurers have found unique ways to walk the talk.

• P&C insurers can defend against climate-change threats by assessing and evolving their value models, increasing their sustainability focus on investments and underwriting, and building a sustainable ecosystem.
• To proactively support the green transition, insurers must prioritize environmental-friendly and resilient products and services including risk prevention, parametric insurance and restoration.
• By integrating granular data-driven insights into risk assessment strategies, insurers can balance sustainability priorities, viable pricing, and profitability goals.

Read on to learn how insurers can repurpose their value proposition to protect policy holders amid growing sustainability concerns.