As long-term investors, insurers are pivotal in transitioning to a low-carbon economy. The insurance industry manages investments totalling £1.8 trillion in the UK alone. Across Europe, insurers invest over €10.6 trillion in the EU economy. Their vested interest in responsible investment stems from the direct consequences that climate change and a disorderly transition can have on their businesses and policyholders.
According to Aon’s Climate and Catastrophe Insight 2024 report, the direct economic cost of the physical impacts of natural disasters last year totalled $380 billion, 22 per cent above the 21st-century average. Most, if not all, insured risks are directly or indirectly exposed to the physical or transition risks of climate change. Read More
News Credit: AON