Research related to the economic effects of climate change has increased and gained momentum, according to the webinar Climate change risk & resilience: Facing the Facts, Thursday presented by the Insurance Information Institute as part of this year's virtual online joint industry Forum.
"The Climate and Sustainability Agenda has been our fastest growing workflow in recent years," said Tim Adams, President and CEO of the Institute of International Finance, which consists of 450 institutions across the spectrum of financial intermediation, 35 of which are the world's largest insurers. and reinsurers.
"Climate-related impact research has gained momentum in recent years," said Carolyn Kousky, CEO, Wharton Risk Management and Decision Processes Center, adding that the research "is addressed by a wide range of disciplines."
Interest to address climate change and the growth of the movement began primarily in Europe, Adams said, but "over the past year, more and more countries have made climate promises, such as Japan and China." Climate is a global problem that requires a global solution, " said Adams.
Last summer, Adams started the American Climate Working Group, "pending a possible change of administration in Washington, knowing that we have another administration, a Biden administration, we would have a completely different path with regard to to the climate, Adams said.
Susan Holliday, Senior Adviser, International Finance Corporation, World Bank Group, also sees a local element in the climate change agenda.
"Climate is an issue that is both completely global ̵
Research related to the economic effects of climate change also has a broad base of components.
“Much of the work in our center focuses on social science approaches to these problems, but we see interest between institutions, universities and this reflects the fact that climate change is likely to affect all sectors of our economy the impact is likely to worsen in the coming years, and we will see economic effects when we begin this transition to a low-carbon economy, says Kousky.
For insurers, managing the effects and potential economic consequences of climate change must go beyond just paying damages.
"We need to look at the climate in terms of prevention and countermeasures as well as compensation," Holliday said. "Just looking at compensation and ignoring the other two angles is not sustainable."