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"An uninsurable world is a price that society cannot pay"

Erik Solheim, CEO of UN Environment, explained that the insurance industry is essential to understand and reduce risks due to climate change

"An uninsurable world is a price that society can not pay"

Climate change produces different challenges in daily life. One of these challenges is to understand what risks the human being faces, especially when he wants to insure his assets. For this reason, "the UN Environment Financial Initiative (UNEP FI) announced a partnership with 16 of the world's largest insurers, which represent around 10% of the global premium and US $ 5 billion in assets under management, for develop new risk assessment tools that help the insurance industry better understand the impacts of climate change on their businesses".

Leer en español: “Un mundo no asegurable es un precio que la sociedad no puede pagar”

The truth is that climate change jeopardizes the insurability of economic assets and human lives. Given this, the alliance aims to find effective tools to understand and reduce the risk that this phenomenon implies.

Also read: Did you know that the earth moves at 994 miles per hour?

According to the press release, the importance of this alliance lies in the fact that "insurance coverage encourages the reduction of risks, puts a price on these dangers, eliminates the risk of investments and serves as a financial cushion for the communities, companies and governments. Although insurers are also big investors, with global assets under management of more than US $ 30 billion, this initiative will focus on the assessment of climate risks in their portfolios and basic insurance products".

These are the 16 insurers

  1. Allianz (Germany)
  2. AXA (France)
  3. IAG (Australia)
  4. Intact Financial Corporation (Canada)
  5. Länsförsäkringar Sak (Sweden)
  6. MAPFRE (Spain)
  7. MS & AD (Japan)
  8. Munich Re (Germany)
  9. NN Group (Netherlands)
  10. QBE (Australia)
  11. Sompo Japan Nipponkoa (Japan)
  12. Storebrand (Norway)
  13. Swiss Re (Switzerland)
  14. TD Insurance (Canada)
  15. The Co-operator (Canada)
  16. Tokio Marine & Nichido (Japan)
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UN Environment highlights that "the Principles for the Sustainability in Insurance serve as a global framework for the insurance industry to address environmental, social and governance risks and opportunities, and as a global initiative to strengthen the contribution of the insurance industry in the construction of resilient, inclusive and sustainable communities and economies".

 

LatinAmerican Post | Marcela Peñaloza
Translated from “Un mundo no asegurable es un precio que la sociedad no puede pagar”

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