PwC: Leading insurers set industry benchmark in response to climate change

By Rob Starr, Content Manager, Big4.com

The fifth independent review of ClimateWise members, conducted by PwC, shows that a leading group of insurers are at the forefront of integrating climate change into business as usual.

Jon Williams, partner in PwC’s sustainability and climate change team, said:

“With a rise in global temperatures of 60c a real possibility by 2100 [reference Low Carbon Economy Index], it is clear that insurers will need to take account of increasing climate unpredictability in their business models and convert the associated risks to opportunities.

“Hurricane Sandy remains a timely reminder that climate change will bring more extreme and unpredictable weather and with it, significant insured losses. Insurers can be seen as both drivers of change to reduce the risk and an industry that helps rebuild and protect local communities in times of difficulty. They need to do more to embed climate change into their underwriting processes, pricing and capital management whilst at the same time develop new products and services that respond to an increasing level of crises.”

Over the past five years, ClimateWise members have made significant advances in research and data used for modelling risk and had considerable engagement with policy makers, highlighting where green investments in mitigation and resilience could save costs for insurers and reduce risks for consumers in the future.