Insurance is playing an increasingly pivotal role in managing short-term climate risks and driving the long-term growth of carbon markets, making it essential to global business strategies. Climate risk insurance protects businesses, governments, and communities from the financial impacts of extreme weather events, while insurance for carbon credits enhances the credibility of carbon markets by covering the risk of underperformance in emissions reduction projects. These two forms of insurance are closely linked: carbon credits help mitigate long-term climate risks, while stable carbon markets attract greater investment in climate solutions.
Despite progress, significant challenges persist in refining climate-related insurance due to the complexity of climate modeling, data gaps, regulatory hurdles, and evolving market dynamics. Hear from our experts as they share insights on where the future of climate-related insurance is headed.