Insurers, as well as reinsurers, are playing a "leading" role in the transition to a resilient low-carbon economy via leadership in pricing, modelling and offering protection against natural catastrophe risk, according to an industry study.
Many Property & Casualty and life insurers and reinsurers are taking steps to integrate climate change into their investment strategies by developing sustainable financial frameworks that mobilize mainstream finance to invest in the transition, according to the Geneva Association.
They are initiating various intra- and inter-sectoral pilot programs through multilateral platforms to develop and evaluate approaches to climate risk assessment.
On the liability side, as the vast majority of P&C insurance and reinsurance contracts are underwritten or renewed annually, underwriters can make adjustments to pricing, terms and conditions and product offerings to progressive climate change for their key portfolios.
Over the long term (2030-2050), the impacts of physical and transitional climate change risks are more uncertain for life insurers and reinsurers.
The risks could lead to a rise in deaths through increased cardiovascular and respiratory illnesses, agricultural impacts that adversely affect diet and nutrition and an increase of infectious and vector-borne diseases. Conversely, transitioning to a low-carbon economy could have positive impacts on health and longevity via less air pollution.
On the asset side, investors are beginning to account for the effects that transitioning to lower-carbon economies may have on the long-term earning potential of carbon-intensive sectors such as energy, automotive, chemical and manufacturing companies.
Investors are also placing more emphasis on the impact of climate change when making investment acquisition and disposition decisions.
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Sep 5, 2026
