Insurance in a world of climate extremes : what latest science tells us

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      <subfield code="a">Insurance in a world of climate extremes
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      <subfield code="a">Current studies point to severe mid- to long-term consequences if climate change is not mitigated and global temperature increases are above 2°C pre-industrial levels, breaking that target of the Paris Agreement. Besides the human impact, the insurability of assets in highly exposed regions will be called into question. For insurability not to be threatened, adaptation to a profoundly changed risk landscape is required. Re/insurers can play a fundamental role in facilitating transition to a low-carbon economy by embedding sustainability as a core element in their business models, and by reducing their own carbon footprint. Besides shifting towards an environmentally sustainable asset portfolio, re/insurers should align their underwriting policies to reduce incentives that favour further carbon-intensive energy production and consumption. Industry-wide implementation of these principles will help build the world's resilience to a changing climate</subfield>
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