Got it covered? Insurance in a changing climate
The insurance industry, a sector with assets worth around USD 15 trillion, needs to urgently step up its low-carbon investments and prepare its portfolios for climate-related financial risks, according to an Asset Owners Disclosure Project report. Nine out of ten investment strategies in the insurance industry are still not aligned with the central goals of the Paris Climate Change Agreement, which is to limit the global average temperature rise to well under 2 degrees Celsisus in order to avoid the worst impacts of human-induced climate change. Such impacts, which include severe droughts, storms and flooding, which are already costing the insurance industry billions in damages.