Climate change clearly presents risks for insurers, whether it be through impacts on claims or assets values. However, having an investment strategy that has a ‘greater good’ element could be a significant opportunity to increase engagement and trust with policyholders and members. It could also help to attract tomorrow’s customers.
The regulator doesn’t (yet) require you to invest in a sustainable way. However, it does expect you to consider the investment risks that could materialise through climate change.
This briefing note outlines the key issues faced when investing with climate change targets in mind. It concludes with a five point checklist of what you should be doing now, including risk management requirements.