Transcript ppt - WMO

Insurer perspectives
on climate change adaptation
Results of a global survey –
A sneak preview
[email protected]
UNEP FI
December 2011
UNEP FI’s approach to insurance and climate
change adaptation
Insurance industry
•
How is the insurance industry contributing to the climate resilience of economies and
communities through its risk management and risk transfer products and services?
What are examples of effective solutions and how can these brought to scale?
National and local governments
•
What actions by national and local governments are needed by the insurance
industry to develop and scale up risk management and risk transfer products and
services for vulnerable communities?
Intergovernmental process
•
How can the intergovernmental process – specifically the next international climate
change regime under the UNFCCC – mobilise the insurance industry to develop,
implement and scale up risk management and risk transfer solutions for vulnerable
communities, particularly those in developing countries?
Highest climate risk in the past 20 years in
developing countries
Future regional vulnerability of human populations
to climate change
Regions with a high CDVI are expected
to be most negatively impacted by
climate change.
The CDVI is based on ecological and
demographic models .
© McGill University
Source: Samson, J. et al. (2011) Geographic disparities and
moral hazards in the predicted impacts of climate change on
human populations. Global Ecology and Biogeography.
The insured and uninsured world
Overview of property insurance premium per capita
Insurance groups:
Highly insured countries
(> USD 1,000 )
Well insured countries
(USD 101 - 1,000 )
Basically insured countries
(USD 11- 100)
Source: Munich Re, property insurance premium (non-life including health), per capita in 2008
© 2011 Münchener Rückversicherungs-Gesellschaft, Geo Risks Research, NatCatSERVICE – As at May 2011
Inadequately insured countries
(< USD 10)
Survey Background
•
•
•
•
67 participants
24 countries
56 companies
33 from developed countries; 32
developing countries
Question 1 - climate change?
Insurance
Belief
in ClimateinChange
Top Influential
Factors
for Believing
Climate Change
Influential factors
National Policy and Regulations
16
1% 4%
19
International policy and regulation
Media
27
Yes
Insurance industry intiatives
30
Insurance Claims Data
No
N/A
38
Scientific and Climate Evidence
61
0
10
95%
20
30
40
Number of Respondents
50
60
70
Question 3 – insurer action: processes
Lines of insurance
Response to Climate Change in the Past 5 Years
Risk underwriting
35
Risk quantification and modelling
34
Loss prevention measures
31
Risk research
31
Product development
26
Risk mapping
26
Risk survey
26
Loss reduction measures
22
Claims management
18
Traditional reinsurance and retrocession
18
Insurance-linked securities
13
0
5
10
15
20
25
30
Number of Respondents
35
40
Question 2 – relevance of climate change?
Aviation, Marine and Transport Insurance
Credit and Surety Insurance
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
10 years
10 years later
Motor Insurance
2.5
2.0
Relevance
now
2.5
2.0
1.5
10 years
1.0
1.0
1.0
0.5
0.5
0.5
10 years
10 years later
Now
10 years later
2.5
2.0
1.5
1.0
1.0
10 years
10 years later
0.5
now
10 years
10 years later
10 years later
Accident and Health Insurance
1.5
0.0
0.0
10 years
3.0
2.0
0.5
now
10 years later
2.5
1.0
0.5
10 years
Agroforestry Insurance
1.5
10 years
now
3.0
2.0
now
0.0
0.0
now
2.5
0.5
10 years later
1.5
1.0
0.0
10 years
1.5
Engineering Insurance
1.0
now
1.5
3.0
1.5
0.0
2.0
Property Insurance
0.5
2.5
2.0
10 years later
3.0
3.0
2.0
0.0
now
2.0
1.0
3.0
3.0
2.5
1.5
Life Insurance
Average Relevance of Climate Change to Risk Management and
2.5
2.5
Transfer
Activities Over Time
0.0
0.0
Financial Lines Insurance
Casualty and Liability Insurance
0.5
0.0
0.0
now
10 years
10 years later
now
10 years
10 years later
Question 4 – insurer action: products
Types of Products Offered Related to Climate Change
Credit and Surety
1
18
3
Life
20
13
Agroforestry
Products
Financial Lines
1
20
21
6
Casualty and Liability
26
5
Accident and Health
Transport
4
Engineering
4
Index
32
32
5
Motor
Indemnity
29
38
14
Property
0
5
48
10
15
20
25
30
35
Number of Respondents
40
45
50
Question 7 – making it real.
Benefit
Benefit per Risk Management Solution
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2.46
Land use
2.46
Flood
2.34
2.31
2.29
2.29
2.24
2.10
Zoning
Conservation
Infrastructure
Drainage
Disaster
Irrigation
Risk Management Solution
Question 7 – making it real.
Cost Effectiveness
Cost-effectiveness per Risk Management Solution
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2.49
Flood
2.41
Drainage
2.20
Conservation
2.19
Infrastructure
2.12
1.98
1.93
1.86
Irrigation
Land use
Zoning
Disaster
Risk Management Solution
Question 8 – to do´s for government - locally
Degree of Effectiveness
Degree of Effectiveness per Government Action at the
Local Level
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2.47
Drainage
2.40
Flood
2.36
Landuse
1.40
1.28
1.19
Subsidies
Insurance
Regulations
Disclosure
Government Action
Question 8 – to do´s for government - nationally
Degree of Effectiveness
Degree of Effectiveness per Government Action at the National
Level
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2.47
Disaster
2.45
Infrastructure
2.40
Climate
PolicyDialogue
2.02
1.98
1.91
Insurance
Regulations
Disclosure
Subsidies
Government Action
Question 8 - to do´s for government internationally
Degree of effectiveness
Degree of Effectiveness per Government Action at a
International Level
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2.50
Weather
2.44
Research
2.38
Models
1.56
1.44
1.33
Subsidies
Drainage
Irrigation
Government Action
Preliminary conclusions
• Insurers are already adapting to climate change,
across lines of business and internal processes
• Insurers are already helping societies and
economies adapt to climate change
• These activities can be expanded and up-scaled
through public-private collaboration
• There are ideal roles for local, national and
international government bodies to play