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Insurance companies underwriting activities could impact climate change badly

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According to a new WWF report, there is about $6.86 trillion in gross written premiums, giving insurance companies great potential to reduce climate change's impact and nature loss.

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Here are some highlights of the WWF report:

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1. There are significant financial risks for insurers because of payouts related to climate change events such as wildfires and earthquakes.

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2. This can be addressed by realigning policies to suit climate change goals.

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3. Insurance products can be designed to encourage more sustainable choices through incentives for the insured who prioritize “repair over replace” during claims.

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4. Environmentally harmful products must be denied insurance, prompting companies to replace them with cleaner and more natural solutions.

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5. Insurance policies could be altered to remove any clauses that might negatively affect the environment.

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Mostly, WWF recommends finding environment-friendly alternatives to all energy-intensive activities to ensure a safer, healthier, and cleaner future.

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