Climate change

European insurers react to IPCC report: Adaptation is crucial to ensure climate resilience


Following the publication of the Intergovernmental Panel on Climate Change (IPCC) report Climate Change 2022: Impacts, Adaptation and Vulnerability, Nicolas Jeanmart, head of personal and general insurance at Insurance Europe, said:

“Insurance Europe fully supports the need for a very strong focus on adaptation, as suggested by the IPCC in its latest report, which was released today.

“Strong measures are, of course, vital to mitigate climate change, which is why Insurance Europe supports the objective of European policymakers to reduce EU greenhouse gas emissions by at least 55% by 2030. At the same time, the latest IPCC report is a very strong reminder that climate change adaptation measures are equally important — and increasingly urgent — to ensure the climate resilience of citizens and societies at large.

“Adaptation measures require actions from a wide range of stakeholders: in the first instance, governments need to initiate the measures. We therefore call on policymakers at local, national and regional levels to ensure that enough attention is paid to climate change adaptation. This includes measures such as adapting critical infrastructure to increase its resilience to climate change, and adapting and duly implementing building codes and land-use planning.

“The insurance industry also has key roles to play, and insurers across European markets are in fact already cooperating* with public authorities at local, national, regional and local level. Insurance cover is a crucial aspect of building resilience in the wake of extreme weather events. Indeed, societies with a higher penetration rate tend to recover from these events more quickly than those with a relatively low rate. Insurers also measure and price climate risk to inform the risk management of businesses and individuals, and can provide advice on how to develop innovative adaptation solutions. These measures can complement the significant climate change adaptation measures that need to be taken by public authorities.”

*Examples of such initiatives can be found at Insurance Europe’s Sustainability Hub.