Denis Kessler, the Chairman and Chief Executive Officer of French reinsurer SCOR, has described the evidence for rapid climate change as “absolutely compelling” and called on the industry to share expertise.
His comments, delivered at a conference this morning at the international rendez-vous of insurance and reinsurance, detailed the extent of climate risk and the potential impact on the industry.
“Global temperature has risen by one degree since the late 19th century, which is absolutely considerable,” Kessler said.
“For the first time in the earth’s history, climate change is attributable to human activity; we have to find a solution for carbon emissions.”
He added that, unless we can find a solution to limit emissions, global warming is going to continue, creating incredible difficulties for the re/insurance industry.
“In the most extreme warming scenarios, the risk universe will be so profoundly modified that parts of the world will become un-insurable.”
These comments echo previous commitments made by SCOR for its next strategic plan, which is set to “fully integrate” a range of climate risk management approaches.
SCOR has also expanded its insurance and facultative reinsurance underwriting exclusion list to include the construction of new coal-fired power plants, irrespective of the technologies, the construction, and quality of the coal.
The initiative built upon SCOR’s initial underwriting commitments from 2017, when it ceased to provide insurance or facultative reinsurance specifically promoting the operation of new thermal coal mines or lignite mines and plants.
“This is our industry, natural catastrophes are at the centre of re/insurance so this is just a natural development of what we’ve been doing for centuries,” added Kessler.
“Unless we take an active part of the debate, we will miss our social responsibility.”
