The role of the industry will face scrutiny. While insurers will gather at the event to present their plans to target decarbonization through the Net Zero Insurance Alliance, the Insure Our Future campaign will launch the latest scorecard highlighting the industry’s “leaders and laggards.”
While the industry can expect continued scrutiny of its fossil fuel insurance, the COP26 discussions present an opportunity to highlight the role that industry can play in supporting climate-resilient growth and development.
COP26: Daily Insured Bulletin | Version 2 – Download here
The industry toolkit enables it to develop mechanisms that can help support the most vulnerable countries to adapt to climate change and build resilience in the face of catastrophic loss events.
Discussions at COP26 are an important opportunity to help align funding with local resilience goals. New protection systems will be needed to help protect vulnerable communities from future risks. The insurance industry brings expertise that can help develop these solutions.
The challenge remains in achieving these solutions at scale. While many beta programs are launched each year for adaptive solutions, many struggle to get past the beta phase and reach the scale needed.
As we highlight in today’s update, there is a growing interest in upfront financing – before the event – rather than in the post-disaster response. The recognition of insurance as an important tool in disaster risk management is also increasing, as we explore in today’s edition of the daily COP26 Insurance Bulletin.
The headlines of today’s talks in Glasgow focused on an intergovernmental agreement to halt deforestation. More than 100 political leaders, representing more than 85 percent of the world’s forests, have agreed to reverse forest loss and land degradation by 2030.
As we report in this release, three insurers – Aviva, AXA and Score – are among the financial institutions that have committed to support ending investment in commodity-based agricultural activities linked to deforestation by 2025.
In this edition, we also hear from Steve Bowen, Aon’s Head of Disaster Insights, who highlights how this year’s weather events carry the “hallmark” of climate change, as the industry is now developing “different levels” of confidence in how climate change will affect certain risks.
Look out for our ongoing coverage of insurance related news coming up during Funding Day tomorrow as well as the rest of COP26.