Climate change is one of the most powerful megatrends altering the operating conditions of the insurance sector because of vulnerability of societies, individuals and firms interconnected with their businesses. It has been claimed that climate-related business risk resembles an iceberg, were around 30 percent of the overall risk is visible, while the bigger and much greater part is under the surface.
The Cancun Agreements put fort at the COP16 conference in 2010 stressed the urgency of climate change adaptation. Furthermore it recognizes that insurance industry’s expertise brings potential value in reducing vulnerability and building resilience to climate change risks, particularly in developing countries.
The purpose of the paper is to bring forth a gap in climate change actions between the larger Nordic non-life insurance companies and the small and medium sized companies and the role of finance and insurance associations in narrowing the gap.
The author was one of the speakers at the climate conference "Klima og forsikring", arranged by Danska Forsikringsforeningen and in cooperation with Forsikringsakademiet, in the autumn 2012 (see article in Scandinavian Insurance Quarterly 3/2012).
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