The "From Fragility to Insurability" report was introduced for the first time within the scope of Insurance House

As part of the climate summit COP31, the "COP31 Global Sustainable Insurance Summit", organized in cooperation with UNEP FI, ​​continues at the Insurance House event held by TSB in a hotel.

The summit brings together leading representatives of the global insurance industry and focuses on solutions and collaborations that can be developed in the fields of climate risks, resilience, reducing protection gaps and sustainable insurance.

Butch Bacani, Head of Insurance at the UN Environment Program (UNEP), made a presentation here on behalf of the Principles for Sustainable Insurance (PSI), a cooperation initiative between the UN and the global insurance industry.

Introducing the report they prepared within the scope of the COP31 action agenda for the first time and sharing its results, Bacani said, "For the first time, I will present the launch of a technical report (policy document). You can call it our action agenda or plan, from Fragility to Insurability." he said.

Bacani pointed out that in order to reduce the effects of climate change, reducing emissions and adapting to the physical effects of climate change must be carried out together, saying, "It must not be one or the other, but both." he said.

Touching on the effects of climate-related risks, especially in developing economies as well as Europe, Bacani explained that economic losses and insurance protection gaps increase insurance costs in high-income countries.

Bacani stated that the study revealed that many sectors are not prepared for major climate-related events and said, "This is an indication that industrial sectors around the world are becoming increasingly vulnerable to climate-related hazards." he said.

Stating that, according to the report, the capital cost premiums of companies that are more exposed to climate-related physical risks also increase, Bacani noted that increasing resilience can reduce capital costs, while vulnerability to risks may bring premium costs to companies.

Talking about the processes of creating the relevant working group within PSI, Bacani said, "As a group, we had the vision to see how we could reverse this trend by becoming more resilient and reducing risk before losses occur, rather than simply responding to disasters." he said.

Bacani also explained in detail the sector's main contributions to adaptation and resilience in the context of the report.

Stating that the "Resilience building cycle" was discussed in the report, Bacani said:

"Insurance identifies and determines what a community or business needs and what kind of adaptation strategy it needs to be resilient. When they do this, they become more resilient, which increases the insurability of that asset. This insurability makes them bankable and investable. When this happens, a cycle is created where you can open up more financing for future resilience and even broader sustainability. But this can also work in reverse. That's how we want the cycle to work."

Touching on the main recommendations in the report, Bacani said that they aim to create an action agenda that covers all segments of society in order to increase resilience throughout the economy.

Bacani stated that policy makers, households, banks, insurance companies, businesses and development finance institutions can contribute within the scope of these recommendations.

"COP31 Global Sustainable Insurance Summit" within the scope of the Insurance House event will end tomorrow.