In addition to the discussion of the future of the energy sector at the 26th United Nations Climate Change Conference of the Parties (”COP26”) taking place in Glasgow, Scotland from October 31 – November 12, 2021, there has also been a discussion of the role of the insurance industry in addressing climate change.
A new report from the University of Cambridge Institute for Sustainability Leadership (CISL, 2021) entitled Risk Sharing in the Climate Emergency: Financial regulation for a resilient, net zero, just transition released at the conference envisions climate policy as a risk management system and provided a comprehensive vision for risk sharing going forward. The report recommended 20 actions going forward that include insurance regulators requiring disaster risk financing, developing programs to serve the uninsured, and ensuring that contingent liabilities are accurately reflected in underwriting and investment portfolios.
