Despite the perceived materiality of nature-related risks to underwriting business, majority of re/insurance industry participants fail to assess those risks due to a lack of awareness and understanding, data and information, regulatory and supervisory guidance and many other reasons.
This report seeks to raise awareness of the relevance of nature-related risks and opportunities for underwriters, and explores how the insurance industry can properly account for nature in decision-making processes.
It summarizes key concepts and introduces a framework for identifying and assessing nature-related risks in the re/insurance industry. It also discusses four different approaches that insurers can adopt to reduce the impact on nature or contribute to its protection and restoration.