A study conducted by NGO WWF and Deloitte Switzerland has highlighted how insurers’ underwriting activities are exacerbating climate change and nature loss rather than mitigating these dual crises. The report highlights various non-life underwriting sectors, such as liability insurance, marine and vehicle insurance, and property insurance. While some insurers have begun to incorporate environmental considerations into their strategies, the actions taken so far fall short of the necessary measures, it said. Thomas Vellacott, CEO of WWF Switzerland, said: “This summer, we witnessed devastating heatwaves and wildfires. Insurance companies and their clients are particularly affected by these events as they lead to greater payouts and entire regions become uninsurable. It’s high time insurers address these risks by aligning their underwriting business with global climate and biodiversity goals to protect what is of value for our future.” The report recommends insurance companies commit to net zero greenhouse gas emissions by 2050, engaging with clients and brokers to promote sustainability, and excluding environmentally harmful activities from insurance policies. To support these efforts, policymakers and regulators are urged to align insurance regulations and policies with these recommendations as part of the transition toward a net zero, nature positive economy. Marcel Meyer, Head of Sustainability at Deloitte Switzerland, said: “With their reach across all industries, insurance companies have the ability to incentivise sustainable practices and promote responsible behaviours of their customers.”
