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.
Here are some highlights of the WWF report:
1. There are significant financial risks for insurers because of payouts related to climate change events such as wildfires and earthquakes.
2. This can be addressed by realigning policies to suit climate change goals.
3. Insurance products can be designed to encourage more sustainable choices through incentives for the insured who prioritize “repair over replace” during claims.
4. Environmentally harmful products must be denied insurance, prompting companies to replace them with cleaner and more natural solutions.
5. Insurance policies could be altered to remove any clauses that might negatively affect the environment.
Mostly, WWF recommends finding environment-friendly alternatives to all energy-intensive activities to ensure a safer, healthier, and cleaner future.