Why insurers are taking up climate consulting

Insurers Embrace Climate Consulting to Enhance Client Sustainability

Large insurance companies, including Tokio Marine and Allianz, are stepping up efforts to assist their clients in navigating climate-related challenges. This move aims to mitigate risks and ensure that clients remain insurable amid increasingly frequent environmental issues.

Key Players in the Initiative

Among the major insurers, Tokio Marine and Allianz are leading the charge. By offering consulting services focused on sustainability, these companies aim to support businesses in understanding and managing their climate risks. This initiative reflects a growing recognition that climate change poses a significant threat to various industries, impacting their operations and liability.

What’s Driving This Movement?

The insurance sector is increasingly acknowledging the reality of climate change and its implications for underwriting practices. With extreme weather events becoming more common, insurers are not just looking to cover damages after the fact; they want to actively help clients reduce their risk before any damage occurs. This proactive approach is intended to protect both the insurers and the insured.

Who Benefits?

This initiative primarily benefits clients, particularly those in industries vulnerable to climate impacts. By receiving expert guidance, they can implement measurable strategies to enhance their sustainability while potentially lowering insurance costs. Additionally, insurers position themselves favorably in a competitive marketplace by showcasing their commitment to supporting positive environmental practices.

Conclusion

As Tokio Marine, Allianz, and other insurers embrace climate consulting, they are starting to redefine the role of insurance in a rapidly changing world. This collaborative effort signals a shift towards more sustainable practices that can ultimately benefit both clients and the environment.

Original Source: https://www.ft.com/content/5e0b9ce5-fb28-4d27-a3cb-ee0ee14e4160