The Global Federation of Insurance Associations (GFIA) has asserted that close collaboration and communication with the industry at both global and local level is “vital” to successfully fight against climate change.
In a statement alongside the COP26 summit in Glasgow, the GFIA argued that the transition to a sustainable economy needs cross-sectoral action involving all economic stakeholders and decision-makers.
“(Re)insurers and policyholders share a common goal in encouraging this transition,” the Association maintained.
The GFIA is composed of 41 member associations and 1 observer association which together include insurers and reinsurers from 64 countries.
Re/insurers across the world are already integrating climate risk into their risk modelling and are developing innovative solutions to enhance adaptation and mitigation, and, as investors, re/insurers can support sustainability objectives and considerations
“Not only are (re)insurers the purchasers of assets that promote sustainability, but many also actively seek to issue sustainability-linked bonds and to work with partners to finance and develop green infrastructure,” the GFIA said, noting that life insurers are “ideal partners for long-term investments.”
“Close collaboration between the public and private sectors can facilitate the industry’s work in reducing and transferring risks, including climate risks,” the Association continued.
“Also, when designing adaptation and mitigation policies at local, national and international level, public authorities should seek the participation of insurers due to their expertise in climate-related underwriting and risk modelling.”
“Insurers are also committed to working closely with public authorities to improve public understanding of climate risks to foster more sustainable behaviours across society, to steer adaptation and mitigation measures, and to support better climate-related life and health outcomes.”
