Reinsurance News

Climate change news

News on climate change and how it affects the global insurance and reinsurance industry.

BMA sets out climate risk management expectations for insurers

12th August 2022

The Bermuda Monetary Authority (BMA) has issued a new guidance note on the management of climate risk for commercial insurers. The guidance note outlines the BMA’s expectations for commercial insurers and insurance groups regarding their management and reporting of climate change risks. Focussing on corporate governance and risk management practices for climate ... Read the full article

ARC addresses role of insurance on climate change impacts in Africa

10th August 2022

The African Risk Capacity Insurance Company (ARC) has hosted a regional meeting to address the role of insurance in fighting climate change impacts on the African continent. Representatives from ARC member states and funding donor partners met in Malawi to discuss how parametric insurance has the potential to transform how the ... Read the full article

Central Bank of Ireland launches climate change risk guidance for insurance sector

8th August 2022

The Central Bank of Ireland has commenced a public consultation on proposals to introduce guidance on climate change risks for the insurance sector. The proposed guidance aims to clarify the Central Bank’s expectations on how (re)insurers address climate change risks in their business and to assist them in developing their governance ... Read the full article

Liberty Mutual joins MIT’s Climate and Sustainability Consortium

3rd August 2022

Liberty Mutual Insurance has announced its membership to the MIT Climate and Sustainability Consortium (MCSC), supporting the acceleration and implementation of large-scale, real-world solutions to address climate change. Liberty Mutual now joins 17 other member companies in the Consortium’s efforts to inspire transformative climate progress across industries and the globe. Francis Hyatt, ... Read the full article

Climate change events increasing claims paid in Australia

2nd August 2022

Climate change-induced natural catastrophe events have resulted in an increase in claims paid by Australian property insurers and consequently pushed their loss ratio up from 66.1% in 2019 to 84.6% in 2021, according to a new report from GlobalData. The loss ratio is expected to remain above the 80% ... Read the full article

Cat models still not fully reflecting climate change, says RenRe CEO

29th July 2022

Commercially available catastrophe models are still not properly reflecting the impacts of climate change as an evolving phenomenon, according to RenaissanceRe’s Kevin O’Donnell. Speaking on an earnings call following the release of RenRe’s Q2 results, O’Donnell addressed a variety issues, including the poor historic performance of cat models. The reinsurer fell ... Read the full article

Insurance Europe response to FSB consultation on climate change impacts

7th July 2022

Insurance Europe has responded to a consultation by the Financial Stability Board (FSB), saying that there is no evidence to say that insurers are particularly vulnerable to system-wide impacts from climate change. The federation that presents the European insurance market said in an eight-page response said that systemic risk emanating from ... Read the full article

African insurers can help to reduce climate change impact in the country: Faber

30th June 2022

According to the Africa Insurance Pulse, produced by Zurich-based Faber Consulting, Africa is particularly vulnerable to the effects of climate change due to low adaptive capacity and widespread poverty. Yet, by working with policymakers, the sector can help to mitigate and protect Africa from the consequences of climate change while creating ... Read the full article

Sompo Group affirms commitment to climate policies

28th June 2022

The Sompo Group has announced a new scheme called SOMPO Climate Action as part its medium-term management. The proposed action is to help in adapting to and mitigating climate change while contributing to a societal transformation, beginning this year. The firm said that it has also joined the Net Zero Insurance ... Read the full article

Gallagher Re recruits climate resilience leader from World Bank

27th June 2022

Reinsurance broker Gallagher Re has recruited Antoine Bavandi to lead a newly established Public Sector & Climate Resilience Solutions global practice. As Global Head of Public Sector, Parametric & Climate Resilience Solutions, he will manage the practice as it looks to advise both public and private sector institutions. Bavandi most recently served ... Read the full article

Re/insurers positioned to be “driving force” in climate fight: Gallagher Re

24th June 2022

Analysts at Gallagher Re have argued that the insurance and reinsurance industry is well-placed to act as “the driving force behind societal resilience in the face of growing climate risks.” Writing in a blog for the reinsurance broking firm, Divisional Director for Climate & ESG Marie Ekström and Climate Risk Analyst ... Read the full article

Asian coal power plants struggling to find insurance

16th June 2022

A new report from Insure Our Future claims that coal power plants within Asia are finding it increasingly difficult to obtain insurance. The pressure group said that it had obtained documents from KEPCO, the national power utility in Korea, that show it is having to turn to smaller and more inexperienced ... Read the full article

BoE study shows improvements in re/insurer climate risk management

10th June 2022

The Climate Biennial Exploratory Scenario exercise (CBES) recently conducted by the Bank of England (BoE) shows that the UK’s largest insurers and reinsurers are getting better at managing financial risks caused by climate change, but analysts say there is still more to do. Speaking at the Association of British Insurers (ABI) ... Read the full article

Insurers can influence a positive outcome through better management of ESG risks: KBRA

9th June 2022

In a recent report released by KBRA on climate change, analysts have stated that while much of the insurance industry has taken “concrete steps” to address the issue on the asset side of the balance sheet, incorporating sustainability into underwriting is a complex endeavour that requires time and a differentiated ... Read the full article

Geneva Association appoints new board members, joins UN initiative

8th June 2022

Industry think tank The Geneva Association has announced the addition of four new members to its Board following a General Assembly, in addition to its decision to join the United Nations Environment Programme-Finance Initiative (UNEP-FI) Principles for Sustainable Insurance (PSI). The new Board members are: Lard Friese, CEO, Aegon; Xi LUO, ... Read the full article