We aim to explain how clean technology applies to the insurance sector and how the insurance sector can help speed up mitigation to climate change.

The insurance industry is one of the largest industries in the world. Interacting with almost every part of the economy including individuals, corporations, suppliers, trade associations, governments and others, it has a tremendous scope to encourage sustainable behavior. All aspects of insurance core businesses are vulnerable to climate change consequences, including property, liability, casualty, health, life and financial service (Association of British Insurers, September 2007; Epstein & Mills, 2005; Mills, 2005). Losses associated with climate change will therefore affect the operating results of insurers.

Insurers need to be prepared for the negative impact that climate change may have on their operation, and of the operation, properties and health of their clients. By offering appropriate products and services, insurers can significantly help mitigate the economic risks of climate change consequences and gain profits.

New technology can help the insurance companies offer new types of insurance such as Pay-as-you-drive insurance. The insurance sector can also focus on investment in green technology. The insurance supply chain is also a way to bolster up climate change activities.

Our preliminary results demonstrate that through the supply chain and by investing in green technology the insurance sector can help speed up mitigation to climate change.

References

Association of British Insurers (September 2007). Insuring for future climate: Thinking

for tomorrow, today. London: Association of British Insurers.

Epstein, P. R., & Mills, E. (Eds.). (2005). Climate Change Futures: Health, Ecological

and Economic Dimensions: Published by Harvard Medical School, sponsored

by Swiss Re and the U.N. Development Programme.

Mills, E. (2005). Insurance in a Climate of Change Science, Vol. 309, 1040-1044.