Insurers increasing climate change debate profile

Insurers are increasing their profile in the climate change debate and raising awareness among customers, according to the first annual review of the ClimateWise principles.ClimateWise is a group of more than 40 companies and organizations in the insurance industry that aim to reduce the risk of climate change and report publicly on their performance.A year ago, 41 members had agreed to implement six ClimateWise principles into their business operations.The six principles are: lead in risk analysis, inform public policy making, support climate awareness among customers, incorporate climate change into a company’s investment strategies, reduce the environmental impact of the business, report and be accountable.The independent review of the initiative shows good overall progress in these areas, but more work is still needed in certain areas, according to a release from Lloyd’s.The review found the majority of members are taking the lead in risk analysis by researching future risks posed by climate change. In addition, they are playing a key role in informing public policy making.Most members are raising customer awareness and encouraging environmentally friendly behaviour. Half the members have designed products or services geared towards helping customers reduce carbon emissions, according to the release.However, only half of the members currently incorporate climate change into their investments strategies.In order to speed up the pace of change required to tackle the problems posed by climate change, the report recommends that companies factor the long-term risk to the economy caused by carbon-intensive industries into their business decisions.In addition, companies should develop products and services in new areas related to climate change. This includes corporate liability and insurance for carbon markets and rain forests, according to the release.