BDMA Conference 2019

2. Centre for Sustainable Finance: Thought leadership
• The Centre for Sustainable Finance is helping
financial institutions to play a leading role in
building a more sustainable economy.
• ClimateWise is a group of global insurance
industry members collaborating to
communicate, disclose and respond to the
risks and opportunities associated with the
climate change.

3. Market and regulatory action
• The global insurance community is facing a fundamental
turning point.
• Aim to mitigate systematic risk to the global economy
and to ensure robust strategies for companies and
governments.
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4. Physical impact of climate change
• The total value of economic losses from hurricanes in 2017 was nearly five
times the average of the preceding 16 years (2000–16).
• Climate change is expected to increase the intensity of such events, and
the scale of potential disaster events presents a significant challenge for
insurers.
• The development of strong national and regional forecasting abilities is
essential practice for the insurance industry.

5. Transition to a low carbon
• Standards are being set for ‘green’ and ‘brown’ by market, policy makers
and regulators.
• Insurance industry are reviewing strategy and stress testing exposure in
underwriting and investments.
• The potential re-pricing of carbon-intensive financial assets, and speed at
which any such re-pricing might occur.
• Adapt to reductions in insurance premiums in carbon-intensive sectors,
and increase in low carbon sectors.

6. The ClimateWise Principles

7. Risk analysis
• Spread awareness amongst stakeholders and customers of how they can
best respond to climate change risks.
• Improving data quality in response to changing risks.
• Need to consider new modelling and pricing risks, particularly for
renewable energy.

8. Claims
• Settling non-life claims in a sustainable manner.
• Educating their customers and suppliers in the principles of sustainable
claims.
• Increasing the percentage of repairs being conducted in a sustainable
manner.