Geneva Association: Climate Risk
“In May 2008, … The Geneva Association began its [climate risk and insurance project (CR+I)] in response to one of the most multi-faceted challenges to the insurance industry since its inception—climate risk. The project builds on the considerable expertise that The Geneva Association has acquired in this area over more than three decades through its activities as part of its ongoing Risk Management Research Programme.”
- issues that are of specific relevance to the insurance industry, such as the likely range of future claims costs, new business opportunities and scenario testing;
- external challenges to be addressed at the political, educational and social levels, such as the role of government, specific provisions concerning issues such as building codes, zoning restrictions, etc., to prevent repeated losses in hazardous regions.
“The reports and activity produced by the research are aimed at three different audiences:
- the insurance industry: to inform industry stakeholders widely about climate risk and its implications and support its clients adaptation and mitigation measures;
- governments, law-makers and regulators: to inform all legislative and regulatory stakeholders on critical issues, show limitations and the need for regulatory and legislative support in the management of increased impacts on the industry;
- the wider public: to raise awareness about the role of insurance and the limits of insurability and to improve perceptions of insurance.
“The harnessing of market forces is likely to be one of the most effective ways of changing individual and corporate responses to climate risk. Initiatives from the insurance sector produce very significant progress in mitigation and adaptation measures, and are likely to continue to do so. The Geneva Association has therefore positioned its research:
- to provide an overall industry understanding of climate risk in order to allow companies to better manage their own risk exposure and how to position climate risk in a holistic approach;
- to provide and occupy common ground above and beyond the individual corporate interests such that a significant body of the insurance industry can act collectively, speak with one voice and engage external stakeholders as a credible force in this most serious challenge.
See The Geneva Association, Climate Risk and Its Economic Impact on Insurance.