Paris climate change conference and its implications for insurance
27 January 2016
18 December 2023
Andrew Dlugolecki, Policy and Public Affairs
An expert analysis into the issues and agreements made at the Paris climate change conference and their implications for insurance.
These key issues debated at the Paris conference present both new risks and opportunities. The insurance sector can play an important role in both areas. But it needs to take a more proactive role and collaborate with other stakeholders to prevent some risks becoming uninsurable, safeguard its assets under management, and take advantage of new markets. This applies to general insurance and life insurance with pensions and investment, though the issues are somewhat different for the three sectors.
The research identifies two key challenges facing the insurance sector:
- The mitigation policies that have been put into place to reduce greenhouse gas emissions (GHG) - this process will transform the technologies that underpin our mode of life with consequent shifts in economic power between countries, and companies; and
- Adapting to extreme weather patterns - the current climate has become more extreme. As this pattern is expected to continue it implies greater risk for weather perils. In particular, Greenland ice-melt has created a huge temperature anomaly in the North Atlantic, raising the prospect of freakish conditions for the UK.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.