Making Sustainability Stick: The Blueprint for Successful Implementation, Premium Edition

Chapter 9. Insurance

The number of extreme weather events has increased over the past 40 years, which has dramatically increased insurance risk and financial losses. The insurance industry, a major force in influencing corporate behavior, is not going to stand by and absorb financial and property losses due to these events, especially in a down economy. Business leaders need to take note because the insurance industry is moving to reduce its risk and potential liability by developing new policies and products around climate change in the same way other insurance policies protect against fire, flood, tornado, or even hurricane damage. This chapter is therefore focused on providing an overview of how climate change will impact the insurance industry, ...