Best’s Special Report: Insurance Innovation Under the Spotlight After COP26

LONDON--(BUSINESS WIRE)--Ambitious plans to reduce carbon emissions, protect communities and natural habitat and mobilise finance, agreed to by world leaders at the United Nations COP26 meeting, are likely to impact the (re)insurance industry, creating a range of opportunities and challenges.

A new Best’s Special Report, “Insurance Innovation Under the Spotlight After COP26”, states that (re)insurers are in a position to make a unique contribution to the climate risk innovation that governments around the world are looking to encourage.

According to the report’s authors, strengthening the resilience of policyholders through enhanced loss prevention, adaptation and efficient claims payments are key areas where insurers can be most effective in supporting the ambitions of COP26.

AM Best has noted that (re)insurers are already playing an important role in the development of sustainable finance, notably through investment strategies for their large global asset portfolios, which may take the form of investing in assets like solar and wind parks.

However, the report points out that greener does not necessarily mean better, in terms of performance or credit quality. Therefore, to manage the potentially higher investment risk, a number of (re)insurers choose to integrate ESG factors holistically within the investment portfolio rather than giving them complete priority over other investment objectives.

To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=315682.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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