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Mark Kenber: Insurance industry can drive clean revolution and manage our response to climate impacts

Date
15 August 2014
Mark Kenber: Insurance industry can drive clean revolution and manage our response to climate impacts

LONDON: Mark Kenber, CEO of The Climate Group argues the insurance industry has a "double role to play" when it comes to acting on climate, in a recent interview with RE360.

In the video interview, our CEO began by outlining that reinsurance companies "are on the front line of the impacts of climate change". Citing extreme weather events such as Hurricane Sandy and Hurricane Katrina in addition to referencing flooding and droughts, he alluded to the compensatory role of the insurance industry, noting these types of disaster are becoming "more frequent, more intense, and of course, more damaging financially".

But Mark Kenber also affirmed insurance and reinsurance companies have a second role. These companies are "huge institutional investors and how they choose to invest their money can make a huge difference in the future of the planet". On account of this, the insurance industry has an option to move away from fossil fuel industries and instead support initiatives which are "at the vanguard of the clean revolution", the CEO explained. "They can play a role in driving the clean revolution as well as managing our response to the impacts of climate change."

The insurance industry has become increasingly engaged in the climate policy debate, and just last May the world’s biggest and oldest insurance marketLloyd's of London, published a report which advocates that climate risk be taken into account in current insurance models, recognizing “scientific research points conclusively to the existence of climate change driven by human activity". 

This report was swiftly followed by a statement by the CEOs of over 60 leading insurance firms, which committed to principles relating to climate change risk.  

Watch Mark Kenber's full comment for RE360 below:

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By Alana Ryan

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