Insurers and Policyholders: The Growing Concern Over Climate Change

Climate Change: A Primary Concern for Policyholders

According to a recent report by Capgemini and EFMA, nearly three-quarters of property and casualty policyholders view climate change as a primary concern. This sentiment is echoed by over 80 percent of individual and small-commercial clients who have taken at least one sustainability action in the past year. Despite this, only 8 percent of insurers surveyed are considered 'resilience champions,' indicating a significant gap in action against climate-related risks.

Economic Losses and the Role of Insurers

The report highlights the alarming economic losses associated with climate change, which have increased by 250 percent over the last 30 years. While 73 percent of policyholders consider climate change a primary concern, only 40 percent of insurers share this view. This discrepancy underscores the need for insurers to step up their efforts in mitigating climate risks.

Strategies for Climate Resilience

The report recommends three key policies to enhance climate resilience among insurers: integrating climate resilience into corporate sustainability, aligning long-term and short-term goals, and redesigning technology strategies. Seth Rachlin of Capgemini emphasizes that insurers prioritizing sustainability will make smart long-term business decisions, positively impacting their future relevance and growth.

In conclusion, while policyholders are increasingly concerned about climate change, insurers need to take more demonstrative actions to develop climate resilience strategies. Adopting advanced data analysis tools and focusing on risk prevention are critical steps in this direction. For readers, staying informed about their insurer's climate resilience strategies can help in making more sustainable choices.