Dozens of new insurance activities, such as 'green' building credits and incentives for investing in renewable energy, are emerging to tackle the threat of climate change and rising weather-related losses, according to a report issued Tuesday by the Ceres investor coalition.
But the report also said that more insurance companies should be offering similar services to minimize losses and make the most of business opportunities related to climate change.
The report came on the heels of devastating, back-to-back hurricane seasons in the United States that caused a record $75 billion of insured losses during 2004 and 2005.
The report, "From Risk to Opportunity: How Insurers Can Proactively and Profitably Manage Climate Change," highlights the industry's uniquely powerful role in helping the country grapple with and manage emerging risks in the past.
Just as the industry asserted its leadership to minimize risks from building fires and earthquakes, it is well positioned today to further society's understanding of global warming and advance forward-thinking solutions. (The insurance industry is the world's largest, with $3.4 trillion of annual premium revenue.)
The report identifies 190 innovative products and services available or in the pipeline from dozens of insurance providers in 16 countries. Many promise win-win benefits by reducing financial losses and greenhouse gas emissions. More than half of the activities come from U.S. companies supporting energy efficiency, green building design, carbon emissions trading, and sustainable driving practices.
