With the rise of climate change, unforeseen events such as homes damaged by forest fires, floods washing away seaside dwellings and shops, and subsidence causing shifts in foundations, it’s no wonder why the P&C segment is growing fast. Climate risks will be the main driver of growth in property insurance, expanding this sector by 33%-41% by 2040, with USD $110 billion coming from advanced markets.
With this amount of risk at the forefront, your brand needs to focus efforts around climate change, become more resilient to climate-related risks and how to offer the best solutions for consumers. For instance, you can support green industries through new products such as solar farms and other renewable energy resources, which require insurance protection for those projects and operations. Communicating these climate initiatives to new consumers and creating incentives for companies to adopt these eco-friendly strategies will allow policyholders to enjoy lower premiums as a result.
With increasing climate risk, your brand needs to focus efforts around climate change, become more resilient to climate-related risks and how to offer the best solutions for consumers.
But to truly hedge against the ongoing climate threat, your focus should be to work from within to promote an organization with dedicated internal teams that focus on assessments and mitigation efforts, from new product development to underwriting and policy pricing models.
Leaning on advanced analytics, big data and social media information can unveil potential areas that are more prone to weather-related threats and work with those local policymakers to further protect properties. For instance, educating policyholders about specific building design and materials that can best withstand specific weather-related scenarios can help build safer infrastructures and, in turn, lower insurance premiums, increasing the affordability of P&C insurance.
10 - Swiss Re, “In a world of growing risk the insurance industry has a crucial role to play,” swissre.com.