’The industry has a significant opportunity to scale and adapt existing products,’ says report
Howden believes insurance industry has to play a greater role in solving the world’s environmental and nature risks.
The broking group has launched a new report to examine the current state of nature finance and how insurance can help unlock capital to power net zero.
Called Through the Wilderness – a role of insurance in unlocking nature finance, the report claims that the insurance sector is poised to help break down barriers to investment and drive a step change in capital flow for nature.
Insurers have been told there are four core roles the industry can play to enable investment in nature, including risk transfer to mobilise capital, protecting natural assets, enabling trading in environmental markets and governance.
’Significant opportunity’
The report, which was published in partnership with Pollination Group, said: “Emerging experience in adapting and designing new products for regenerative agriculture, coastal and forest systems demonstrate nascent, but growing capacity across the sector.
Read: Aviva announces new capacity deal with Howden
Read: Howden teams up with Microsoft for new proposition
Explore more ESG-related stories here, or discover more news here
“The industry has a significant opportunity to scale and adapt existing products, as well as deliver new solutions, to drive a step change in nature finance. The sector can best drive this agenda forward in partnership with public and private actors, delivering a set of priority interventions to reduce barriers to investment into nature.”
Rowan Douglas, chief executive of climate risk and resilience at Howden, added: “Financial systems are being reconnected to nature through science, data and modelling. Attention is focusing on how to integrate nature risks and assets into financial management, regulation and accounting. Insurance has a significant role in creating value and mobilising finance towards the natural capital we must protect.
“This report creates a path for insurance to help evaluate ecosystem risks and create the governance systems to reduce, manage and share risks, to both protect natural assets and mobilise public and private capital to align with nature.”
No comments yet