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Societal Resilience Programme

The Societal Resilience Programme identifies opportunities for the insurance industry to enhance societal resilience to climate risk on both the underwriting and asset management sides of its business.

As the physical frequency and impact of climate-related catastrophes continues to grow, so to are the economic losses. This has resulted in a protection gap emerging, a widening divide between the total economic and insured losses attributed to climate change. Today, the climate risk 'protection gap' stands at over US$ 100bn per annum (Swiss Re, 2016, www.sigma-explorer.com). This presents the insurance industry with numerous challenges including a loss of market share and a challenge to the traditional role commercial insurance plays as society’s financial risk transfer mechanism.

ClimateWise's Societal Resilience Programme directly addresses the protection gap. It identifies new risks and opportunities across the industry's risk carrying, risk management and asset management activities. Three distinct, yet interconnected research themes focus on asset management, regulation, and resilient cities.

 

The three research themes

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Asset Management
Explores how the insurance industry, as an asset manager, can manage its financial assets in ways that can also reduce risk on the underwriting side of its business. It promotes the commercial opportunities associated with such strategies, the tools and standards required and where the industry can collaborate, with other stakeholders, to further this agenda.

Regulation
Explores where the insurance industry can support global regulators to fully understand the nature of the physical, transition and liability risks climate change presents the insurance industry. It also identifies how the industry can support other parts of the financial system as it responds to the zero carbon, climate-resilient transition.

Resilient Cities
Explores which parts of the insurance industry’s value chain can support cities to make better infrastructure and development decisions while creating new commercial risk transfer and risk management opportunities. The insurance industry has extensive capabilities that can enhance climate-risk resilience in cities that represent its most concentrated and exposed markets.

 

 

 


Other research