Shifting Insurance Models
As climate impacts increase, the insurance industry will need to shift its approach to consider climate damages and engage with communities.
2030 Goals
- Insurers and re-insurers work in a collaborative way with governments and public FIs to manage coverage in a way that can close critical coverage gaps, price climate risk accurately, and simultaneously manage premium prices.
- Position insurance as a fiscal resilience tool that channels private finance into predictable, shock-absorbing resources for governments, strengthening budgets and stability.
StatusNo progress
No progress
- The insurance industry holds a pivotal role in the adaptation finance ecosystem.
- Climate change is partly responsible for a recent surge in insurance premiums and costs are mounting at the same time that regulatory conditions are making it challenging for insurers to make efficient decision about coverage (e.g., CA).
- Low levels of insurance penetration in emerging economies (especially Africa) mean that economic losses from weather-related disasters are not yet reflected in credit and insurance portfolios.
Leading Actors
Private FIs
Allianz, Howden Insurance, Axa, Swiss Re, Aon, Munich Re, Generali
Multilateral Development Banks
World Bank, Inter-American Development Bank (IDB)
International Organizations
Financial Stability Board
Leading Countries
United Kingdom
Alliances
IDF, G7, V20
Supportive Stakeholders
ClimateWise, Bridgetown Initiative, Munich Climate Insurance Initiative, Climate Vulnerable Forum, Global Shield against Climate Risks
Milestones
The below events contain milestones related to Shifting Insurance Models.
November
UNFCCC COP30
Milestones
Shifting Insurance Models
Regulatory guidance announced to balance climate risks and insurance market stability, addressing concerns over rising premiums.
Resources
The below resources all pertain to the topic of Shifting Insurance Models.
Initiatives to shift insurance models
Private Finance, Shifting Insurance Models
- Global Shield which aims provide and facilitate more and better pre-arranged protection against climate and disaster related risks for vulnerable people and countries.
- Africa Climate Risk Insurance Facility for Adaptation (ACRIFA), J23a financing Facility to catalyze the development and uptake of Climate Insurance solutions across Climate-sensitive agri-food value chains
- Insurance Development Forum Disaster Risk Reduction Task Force (https://www.insdevforum.org/working-groups/disaster-risk-reduction-task-force/)
Insurance Development Forum Disaster Risk Reduction Task Force
Private Finance, Shifting Insurance Models
UNEP Closing the Gap: The emerging global agenda of transition plans and the need for insurance-specific guidance
Private Finance, Shifting Insurance Models