Insurance industry continues to consider climate change a problem
The insurance industry has long been attuned to the potential threat represented by climate change. For some insurers, climate change is not an issue of debate, as they are primarily concerned with the intensity and frequency of natural disasters. Over the past two years, the insurance industry has seen trillions in losses associated with uncharacteristically powerful natural disasters, such as Hurricane Sandy, which struck the U.S. in late November. Though climate change remains a volatile subject in the world of politics and among consumers, the insurance industry is less inclined to get involved in the controversy, working instead to find a way to mitigate the impact of intense natural disasters.
Report shows that insurers are taking on the fight against climate change
A new report from the Lawrence Berkeley National Laboratory‘s Environmental Energy Technologies Division notes that more insurance companies are taking action on the issue of climate change. The insurance industry represents the world’s largest business sector, with more than $4.5 trillion in revenue every year. The financial resources at the disposal of the industry make it capable of handling a wide range of disasters, manmade and otherwise, and places insurance companies on the front line of whatever fight climate change may represent. The report suggests that insurers are among the strongest proponents of fighting climate change.
Insurers show that climate change can be defended against
According to researchers, the insurance industry has been a powerful force in leading societal efforts in energy efficiency, emissions reduction, and the adoption of alternative energy. The industry has also pushed for a change in the way people think about the climate and what climate change may represent. For most, climate change is a frightening issue, and one that many environmentalist groups use to push an intense sense of guilt and dread. The insurance industry, however, has been showing that climate change is something that can be defended against, through the use of insurance protections and catastrophe models.
New insurance products document industry’s efforts against climate change
The report notes that new insurance products are emerging from an increased attention on the issue of climate change. According to the report, some 1,148 climate change adaption and mitigation activities have emerged from within the insurance industry. These initiatives represent some 44% of the overall revenue of the industry as a whole. These policies range from pay-as-you go auto insurance to complex policies that involve relocating an entire nation if it succumbs to rising sea levels.