2024: the top five themes in sustainability and climate

Now that we’re halfway through 2024, we’ve noticed a few main themes emerge within the climate and sustainability space. Through our conversations with insurers and brokers, we’ve collated the five key areas that are on the insurance priority list for the rest of the year.

One of the main areas we’ve noticed is biodiversity. Although it is included within the ‘E’ of ‘ESG’, in the past it has often fallen by the wayside. Usually discussions around emissions have taken centre stage, but this is starting to change. We expect to see insurance companies become more involved in biodiversity over the rest of 2024 – whether that is through supporting clients with new biodiversity legislation in the UK or as part of their own sustainability plans.

Putting net-zero plans into action is another key area that insurers are focusing on this year. Many companies have been making the measurement of emissions an increasing priority over the last few years – but they are now looking to move past this analysis to action. Translating broad net-zero goals into incremental change is challenging, but something insurers are starting to take seriously.

To learn about the other top themes we’ve been hearing about from insurers and brokers, you can read the full article here.

On-demand climate risk analysis for the future

HDI Global has launched a tool to help clients meet their climate-related regulatory requirements. The solution uses climate data from Mitiga Solutions’ EarthScan tool, which enables companies to analyse their physical climate risks. Learn more about this collaboration in InsTech podcast episode 306 where we were joined by Mitiga’s Jonathan Liddell and HDI’s Wiebke Cundill.

Exploring ‘truth’, ‘fair’ and integrated parametric insurance

In the first instalment of our upcoming parametric series with Raincoat, Matthew sat down with Co-founder and CEO Jonathan Gonzalez to delve into how parametric insurance can be integrated with traditional indemnity insurance, the technical and regulatory challenges and the importance of creating products that customers perceive as fair.

Evening Event: Revealing the blind spots: making the right decision at the right time, 23rd July

Despite the widespread adoption of models in insurance rate-making, the industry continues to struggle with surprise losses from natural and man-made disasters. For July’s evening event, InsTech is collaborating with EigenRisk and Reask to bring together the providers of data and analytics that are shining a light on the darker corners of risk.

A decade of discovery: 5 key developments in flood risk modelling

JBA Risk Management has been providing insurers with global flood maps for over a decade. Watch our recent webinar to explore the most important technological developments that have occurred during this time – including the use of artificial intelligence and heightened computing power – to see what this means for the insurance industry’s understanding of flood risk.

In the news…

Aon launches carbon capture and storage insurance solution

Aon has developed a new insurance product for carbon capture and storage, focused on international transport and storage companies. The product covers physical risks, loss of revenue and general liabilities for large-scale projects. It will also indemnify for loss of tax credits or requirements to purchase carbon credits due to a CO₂ leak from the storage facility.

Verisk: insured losses up to $3.9bn for South Germany floods

Between 31st May and 3rd June, up to 160 litres of rain fell per square metre across southern Germany — more than what usually falls in a month. Verisk’s full estimate for insured losses ranges from EUR 2.4 billion ($2.6 billion USD) to EUR 3.6 billion ($3.9 billion USD). The company also notes that a large proportion of the overall losses for this event are likely to be insured, due to high flood insurance take-up in the country.

AXIS: insurers can take a more proactive role in the energy transition

Based on a survey of more than 600 energy producers, industrial energy buyers and specialist insurance brokers, AXIS’s report offers insights into how insurers can more effectively enable the energy transition. The report found that climate change is a key driver of change, but also a source of risk for businesses. These risks include energy price volatility and supply chain disruptions.

Mitiga raises over $14m to enhance climate science and risk modelling

Climate technology company Mitiga Solutions raised €13.25M in its initial Series A funding round. The investment will enable the company to scale the use of its physics-based models and expand its science and business team worldwide. The funding round was led by Kibo Ventures, with Mitiga recently announcing a €8m extension led by VC firm Elaia.

Swiss Re’s report explores the cascading effects of natural disasters

Swiss Re’s 12th SONAR report explores a range of emerging risks, including the compounding effects of natural catastrophes on infrastructure. For example, wildfires can impact water infrastructure by contaminating sources. Floods and storms can damage energy grids and disrupt transport networks. If critical infrastructure and supply chains are affected, the accumulation of damage can be significant. You can read more about the impacted businesses areas in the full report.

McKenzie Intelligence Services enhances damage assessments with AI

McKenzie Intelligence Services (MIS) has developed an AI damage classifier to improve assessments following catastrophic events. This capability has been added to its GEO platform, which provides insurers with loss assessments at a property and portfolio level. You can learn more about how the company is working with insurers in our recent LiveChat with Rosina Smith, Chief Product Officer at MIS.

Howden acquires MiCRO for parametric insurance in underserved areas

Howden has acquired MiCRO, a microinsurance specialist that designs and implements parametric insurance coverage for underserved populations in Latin America against natural catastrophes. The acquisition will enable MiCRO to expand the range and reach of its parametric solutions.

Webinar: Enhancing hurricane preparedness in a dynamic climate landscape

On 26th June, EigenRisk is hosting a webinar covering the hurricane forecast outlook for 2024. They will also explore LiveCyc: a pre-landfall forecast solution by Reask, which provides early warnings and helps insurers to assess the intensity of wind speeds at specific locations.