At COP31 this morning, UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI) released a white paper to suggest how the insurance industry and key stakeholders can be the start of resilience across economies and communities increasingly impacted by severe weather.
They say that the paper comes at a time when uninsured losses due to more frequent and severe climate events are mounting, which is shifting the burden and pushing the cost of living even higher.
Linda Friener, Chief Sustainability Officer at Zurich Insurance Group, said: “As physical climate risks intensify, investing in resilience is more important than ever.
“Insurers have a critical role to play, using our risk expertise, data and modelling capabilities to help businesses and government understand and reduce their vulnerabilities, strengthen resilience and sustain insurability over the long term.”
The six key support systems suggested are quantifying and communicating the risk, cost and benefit of adaptation, enabling resilience, rewarding it, unlocking resilience yet to be built (by insuring it), carrying the residual risk that adaptation measures cannot remove and supporting recovery through claims.
Together, these actions are said to be able to support those who own, operate and finance climate-vulnerable assets, projects and businesses before disasters.
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