In 2016, PwC was once again engaged as the independent reviewer of ClimateWise, a group of insurance industry members committed to following six principles on managing climate risk. PwC’s role is to assess each member’s performance against each principle and synthesise findings in a summary report.
In this report we highlight some of the developments that will impact the insurance industry in the coming years. We look at the work of the Financial Stability Board’s (FSB’s) Task Force on Climate-related Financial Disclosures and how the industry will face higher expectations from investors, rating agencies, regulators and other stakeholders as a disclosure provider, but will also benefit as an underwriter and investor from an increase in risk data in the market. We also explore what climate change means for the ‘insurer of the future’ and how the industry should be looking ahead to review the adequacy of their corporate resources and structure. Finally, the report also reviews member performance across the ClimateWise Principles, providing case studies of innovation and good practice in insurance research, risk management and investment practice throughout.