The World Property & Casualty Insurance Report 2022
Future-Focused Insurers see Climate Change as an Opportunity
Climate change is fundamentally altering policyholder behavior
Climate change emerged as policyholders’ second-highest concern (73%), behind COVID-19 in our Voice of Customer survey. Climate change has upended traditional coverage dynamics and today’s policyholders seek protection and peace of mind more than ever. More than 80% of individual and commercial clients have taken at least one sustainable action over the last 12 months – including activities as small as walking versus driving and as significant as investing in resilient structural infrastructure.
Perceived impact of climate change
As customers grapple with anxiety over potential Nat Cat events, insurers are losing sleep, too. Climate change is a top risk for insurers, like cyber, financial, and tech threats. In our executive survey, 74% said they are particularly worried about insurability issues, 72% cite pressure on profitability, and 54% are concerned about regulatory overheads related to climate change.
Most insurers are beginning their resilience journey
To understand insurance carriers’ maturity in the journey towards climate resiliency, we interviewed 270 insurance executives worldwide. Our conversations revealed that only 8% were on the fast track. We call these future-focused insurers Resilience Champions. For many other players, the opportunity is to be fast followers and turn their commitments into actions.