The Intergovernmental Panel on Climate Change (IPCC) has been publishing assessment reports describing expected climate change impacts and risks since 1990 and has warned of the growing risks from climate change in each report. With input from over 670 leading climate scientists from around the world, the IPPC Working Group II on Impacts, Adaptation and Vulnerability published on February 28, 2022 part of the 6th Assessment Report representing the scientific consensus on pending climate change impacts and risks. The report includes several key insights for insurers:
The report states that without limiting global warming to 1.5 degrees C, key risks to North America that are already occurring are expected to intensify rapidly by mid-century.
The report states that there is a short window to lower emissions and undertake adaptation actions to avoid such risks but there are significant barriers to implementing emission reduction and adaptation programs.
Insurers can use an Environmental, Social and Governance (ESG) program to identify significant climate-related risks as part of their enterprise risk assessment process, using scenario analysis to address uncertainty regarding the rate and types of changes and develop a program to manage their exposure to such risks.
The post What the 6th International Climate Report Says to Insurers appeared first on Insurance & Reinsurance.
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