On 13 September, Share Action and Asset Owners Disclosure Project have released a practical guide named “Insuring a low-carbon future”, in which fourteen global insurers discuss how to manage climate change risks and opportunities.
The report highlights how climate awareness is taken into consideration in insurers’ underwriting, investment and risk-management practices. The guide proposes approaches to foster insurers’ climate awareness across operations. In particular, it identifies a framework based on eight key building blocks to support insurers in integrating climate change in their processes.
Ultimately, the guide advises insurers to:
- Challenge policymakers on carbon pricing, fossil-fuel subsidies, and mandatory TCFD-aligned disclosure.
- Invest more resources into understanding climate risks facing life and health.
- Challenge third-party risk model providers on integration of forward-looking climate scenarios.
- Consider impact, as well as risk.