* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Slide 1
Effects of global warming on human health wikipedia , lookup
German Climate Action Plan 2050 wikipedia , lookup
Climate-friendly gardening wikipedia , lookup
Scientific opinion on climate change wikipedia , lookup
2009 United Nations Climate Change Conference wikipedia , lookup
Public opinion on global warming wikipedia , lookup
Climate governance wikipedia , lookup
Climate change and agriculture wikipedia , lookup
Media coverage of global warming wikipedia , lookup
Climate change feedback wikipedia , lookup
Climate change, industry and society wikipedia , lookup
Economics of global warming wikipedia , lookup
Decarbonisation measures in proposed UK electricity market reform wikipedia , lookup
Surveys of scientists' views on climate change wikipedia , lookup
Economics of climate change mitigation wikipedia , lookup
Climate change in Canada wikipedia , lookup
Carbon governance in England wikipedia , lookup
Climate change adaptation wikipedia , lookup
Climate engineering wikipedia , lookup
Low-carbon economy wikipedia , lookup
Effects of global warming on Australia wikipedia , lookup
Politics of global warming wikipedia , lookup
Years of Living Dangerously wikipedia , lookup
Mitigation of global warming in Australia wikipedia , lookup
Climate change and poverty wikipedia , lookup
Solar radiation management wikipedia , lookup
Effects of global warming on humans wikipedia , lookup
Citizens' Climate Lobby wikipedia , lookup
Carbon Pollution Reduction Scheme wikipedia , lookup
How insurers help people deal with climate change – the role of insurance in managing climate change risks Michael Kerner Global Chief Underwriting Officer, Head of Group Strategy Swiss Private Insurers’ Luncheon Brussels, November 5, 2008 The Insurance Mechanism and its Role in Managing Risks Key Function 1 Underwriting/ Risk Engineering 2 Claims Management Investment 3 Assess and price risks, offering customers protection against financial losses – send price signals for risky behavior Risk Pricing Agree on conditions/measures to reduce physical risks, reducing losses to society Loss Prevention Pool risks together to spread the costs and minimize individual capital commitments Risk Transfer Effectively manage loss events to provide customers with timely compensation and relief Carefully invest policyholder and shareholder funds, ensuring adequate funds to cover future claims, while providing a fair return to shareholders Objective: Offer customers appropriately priced risk management solutions, while remaining profitable and providing a fair return to shareholders 5/24/2017 2 The Need for Private/Public Partnership to Combat Climate Change Risks Provide Solutions Private Sector – Insurance Provide Solutions Public Sector – Governments Enable Solutions Combat climate change risks through: 5/24/2017 • Adaptation Reduce vulnerability - minimize impact • Mitigation Slow/eliminate climate change - migrate to low carbon economy 3 Insurance Solutions and Government Enabling Actions - Adaptation Solutions Enabling Actions Objectives 1 Risk Transfer Carefully design public disaster relief systems to avoid perverse incentives Restrict government role to a “re-insurer” of last resort Where needed, develop enabling regulation for microinsurance Effectively spread risks to reduce capital requirements Ensure viability of private insurance market – minimize politically motivated subsidies 2 Loss Prevention Develop sound land development policies and flood protection schemes (e.g., EU Floods Directive, UK Government - ABI agreed principles) Establish construction codes that focus on sustainability Minimize losses Maintain insurability of risks 3 Risk-based pricing Promote responsible and appropriate rate regulation – allow for actuarially sound premiums Encourage customers to actively participate in managing own risks Send risk-based price signals 5/24/2017 4 Insurance Solutions and Government Enabling Actions - Mitigation Solutions Underwriting New Technologies 1 2 Sustainable Investing 5/24/2017 Enabling Actions Direct research funding to low carbon technologies Objectives Reduce GHG emissions Provide tax credits or subsidies to “internalize” the carbon externality and foster deployment of new technologies Establish regimes clarifying insurability of new technologies (e.g., long-term storage liability for CCS) Establish consistent, long-term regulatory framework on carbon, allowing for the development of efficient carbon markets and prices Direct capital to lowcarbon technologies 5 5/24/2017 6