Covid continues to cause severe economic distress, but natural disasters fueled by a warming planet also took their toll this year, causing record damage and displacing millions according to two new assessments of insurance claims in 2020.
Financial services firm Legal & General Retirement has today pledged to cut the carbon intensity of its £81bn annuity book in half by 2030. An interim goal will see the firm, which is targeting a net zero portfolio by 2050, aim for an 18.5 per cent reduction by 2025.
There are prudential and financial stability risks associated with climate change and the transition to a sustainable economy which must be prioritized – something at the fore of the Central Bank’s approach to implementing the Environmental, Social and Governance (ESG) regulatory framework.
Reinsurers are well-placed to advise clients on responding to climate change risk. As climate change and the associated increase in natural catastrophe events alters the contemporary risk landscape, there is now an opportunity for companies to partner with the (re)insurance market and put its expertise to work.
Climate change is complicating two of the most important board responsibilities — its duties to protect long-term shareholder value and oversee risk management, according to Rob Bailey, Director of Climate Resilience at Marsh & McLennan Advantage and Jack Flug, Managing Director, FINPRO at Guy Carpenter-affiliate Marsh U.S. Investors and regulators are paying more attention to how companies are managing climate risks as concerns grow about the risk that climate change poses to shareholder value, with implications for directors.
Smoke from the West Coast traveled across the US this week and is now well on its way to Europe. From our HQ in NYC – the sky was hazy and the sun resembled the Eye of Sauron.
Climate change risk has plagued US insurers over the last several years and the severity is growing. A task force led by several US financial regulators issued a 200-page report warning that climate change poses “serious emerging risks to the U.S. financial system.” Many central banks in other countries are conducting climate “stress tests,” and, in Europe, many companies are now reporting their climate risks.
Riskthinking.AI helps clients better understand their climate-related financial risk so they know where their portfolios are exposed and can hedge or take other appropriate actions.
Firefighters battled nearly two dozen wildfires in California yesterday after a week of raging blazes blackened more than 1 million acres across the state. The rapidly spreading fire, which has killed five people, destroyed more than 1,000 structures and forced thousands to flee, is the result of hotter temperatures, less dependable precipitation and snowpack that melts sooner leading to drier soil and parched vegetation, shows how climate change is affecting the nation’s most populous state.
As a result of a risk analysis exercise that was undertaken over three years ago, the Shaw Festival took out an insurance policy against the threat of a pandemic, which has saved the jobs of 500 employees. Riskthinking.ai develops tools for just this kind of risk analysis, supplying clients with the powerful advantage of better decision-making in the face of extreme uncertainty.