GFIA is proud to join the worldwide collective momentum to combat climate change that is showcased during COP26. GFIA is composed of 41 member associations and 1 observer association which together include insurers and reinsurers from 64 countries.
GFIA represents the interests
of a wide spectrum of companies ranging from small local players to
internationally active groups. Many insurers, at company level, through
their participation in local or global financial sector alliances, and
in a wide variety of ways, support the goals of the Paris Agreement.
They are determined to work closely with the public sector to develop
adaptation and mitigation solutions to climate change and to enhance
resilience.
As underwriters, insurers directly contribute
to adaptation through their underwriting activities. By covering
economic losses due to natural events and natural catastrophes, they
help to manage the economic impacts of climate change. Insurers play an
important role in measuring and pricing climate risk to inform risk
management, supporting the development of innovative adaptation
solutions, and providing economic support when disasters strike.
Insurers
across the world are already integrating climate risk into their risk
modelling and are developing innovative solutions to enhance adaptation
and mitigation. They have decades of experience in risk modelling and in
managing claims that are made as a result of climatic or
weather-related impacts. This claims data yields tremendous insights and
also equips insurers with valuable expertise that can guide climate
risk management.
As investors (asset owners), global
(re)insurers support sustainability objectives and can factor in
sustainability considerations when investing. Not only are (re)insurers
the purchasers of assets that promote sustainability, but many also
actively seek to issue sustainability-linked bonds and to work with
partners to finance and develop green infrastructure. Also, life
insurers are ideal partners for long-term investments. Insurers will
further support sustainable investment as additional investment grade
sustainable assets become available.
Insurers contribute to
mitigation efforts through their own corporate targets, helping foster
mitigation through voluntary incentives and risk-based pricing, as well
as through their investments in sustainable assets. Mitigation measures
are essential to fight against climate change. If no measure to mitigate
climate change is taken, global temperatures are projected to rise by
3°C and global GDP could lose up to 18% by 2050*.
Close
collaboration between the public and private sectors can facilitate the
industry’s work in reducing and transferring risks, including climate
risks. Also, when designing adaptation and mitigation policies at local,
national and international level, public authorities should seek the
participation of insurers due to their expertise in climate-related
underwriting and risk modelling. Insurers are also committed to working
closely with public authorities to improve public understanding of
climate risks to foster more sustainable behaviours across society, to
steer adaptation and mitigation measures, and to support better
climate-related life and health outcomes....
mpore at GFIA
© GFIA - Global Federation of Insurance Associations
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