23 October 2008
Zurich has launched The Zurich Report white paper, “Climate change and the insurance industry – no silver-bullet solution”.
The white paper follows research Zurich Australia commissioned from the highly regarded international corporate climate specialists, Climate Risk and looks at the climate change risks for the insurance industry but, more importantly, focuses on the many opportunities the industry has. It also provides brokers with an overview of some of the challenges the industry and their customers may face with climate change.
“Zurich Australia believes the insurance industry, with its risk management skills and expertise, should see itself as a key player in strengthening community resilience. This not only stands to benefit the broader society but will provide the insurance industry with many growth opportunities, as well as reputational benefits,” said Mr Smith.
Mr Smith added, “Insurers who work with their customers - often through brokers - to increase their resilience to climate change hazards, such as floods or extreme weather, are likely to see reductions to property damage and insured losses, while sustaining and even enhancing premium income.”
As part of its research, Zurich Australia and its advisers, Climate Risk, have developed a framework called the Climate Risk Diamond, which allows brokers and insurers to navigate the complex risks of climate change.
“The framework demonstrates that insurers and brokers can be proactive about managing the risks of climate change,” Mr Smith said. “The Climate Risk Diamond will assist them to not only manage risk, but also develop opportunities to increase profitability, grow their business and secure reputational gains in the face of climate change.”
As part of its proactive stance, Zurich Australia is shortly introducing its “Climate Ready” broker training. This will help brokers better understand the changing risks their customers will face as a result of climate change.
Zurich Australia recently announced it is automatically providing flood cover for its commercial customers. Mr Smith said this was an example of Zurich taking a leadership role on the flood cover issue in recognition of the benefits of taking a proactive stance towards managing emergent climate risk and seizing the related opportunities.
Click here to view The Zurich Report white paper, "Climate Change and the Insurance Industry - no silver-bullet solution".
Read our Media Release, "Climate change a serious threat to the insurance industry, but there are also opportunities - The Zurich Report white paper". |
