Insurance

The challenge: Insurance costs for consumers and businesses are rising due to the increasing frequency of extreme weather disasters. Global economic losses from natural disasters directly affecting communities in 2023 are estimated at $280 billion—that’s over half a million dollars a minute– including $110 billion in damages covered by insurance payouts, figures that will rise as the planet continues to warm.

The good news: Insurance underpins all financial activity, giving the industry a powerful voice to drive climate action by embedding climate, people and nature into its decision making.

How businesses can lead: The insurance industry is in a strong position to help shape a more resilient and sustainable future. For example, insurers can leverage data about risks posed by climate impacts to guide their underwriting decisions. They can accelerate the energy transition by requiring their heavy industry clients to limit emissions while empowering homeowners to adopt cleaner, more resilient technologies. And as large holders of capital, insurers also have the power to invest in clean energy technologies, nature conservation, and in strengthening vulnerable communities.

The insurance industry is well placed to support climate resilience and drive the energy transition. Guided by science and economics, our team of experts can help insurers become climate leaders.