Re/insurance is at the front line of mitigating climate risk and facilitating sustainable growth. Re/insurers can contribute to the UN’s 1.5oC target from both sides of the balance sheet and help drive a unified policy framework for green transition.
Key takeaways of this Economic Insights are:
- Tackling climate risks could lift G20 GDP growth by 4.7% by 2050.
- Insurers can contribute to climate resilience through environmental-friendly underwriting guidelines.
- Incorporating ESG criteria to investment process supports long-term economic growth.
- Green bond issuance is at record highs but is still just 0.5% of global bonds in circulation.
- A harmonized “taxonomy” of what is green and sustainable is needed to further advance climate resilience.
Source: Swiss Re Institute