Best’s Special Report: Insurance innovations in the spotlight after COP26

LONDON–(BUSINESS WIRE) – Ambitious plans to reduce carbon emissions, protect communities and natural habitats, and mobilize funding agreed by world leaders at the United Nations COP26 are likely to emerge impact the (re) insurance industry and create a range of opportunities and challenges.

A new Best’s Special Report, “Insurance Innovation Under the Spotlight After COP26”, states that (re) insurers are able to make a unique contribution to the climate risk innovations that governments around the world want to promote.

According to the report’s authors, building policyholder resilience through improved claims prevention, adjustment and efficient claims payments are key areas where insurers can most effectively support the ambitions of COP26.

AM Best found that (re) insurers already play an important role in developing sustainable finance, particularly through investment strategies for their large global asset portfolios, which can take the form of investments in assets such as solar and wind parks.

However, the report suggests that greener doesn’t necessarily mean better in terms of performance or credit quality. In order to manage the potentially higher investment risk, some (re) insurers are therefore choosing to integrate ESG factors holistically into their investment portfolio instead of giving them full priority over other investment goals.

To access a free 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 specializing in the insurance industry. The company is headquartered in the United States and operates in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. More information is available at www.ambest.com.

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