Request for Proposals: ClimateWise Principles - Developing New Compliance Criteria
16 April 2013
ClimateWise leverages the insurance industry’s expertise to better understand, communicate and act on climate change risk. Members, comprised of representatives from all parts of the industry, commit to action following six key principles and since 2007 have been reviewed against these annually.
After five years it has been agreed that there is a need to revise the compliance criteria to ensure that assessment of member activity continues to drive action and to allow for a clearer measurement of impact.
Proposals are now being requested to develop this new compliance criteria.
Links to the previous reviews, referenced in the RFP are below:
>Appendix 1 - Guidance for Reporting
>Appendix 2 – One Year Review
>Appendix 3 – Second Year Review
>Appendix 4 – Third Year Review
>Appendix 5 - Fourth Year Review
>Appendix 6 – Fifth Year Review
Preparing for a changing climate: the role of the insurance industry.
6 March 2013
ClimateWise Chairman John Coomber presented to a large gathering of senior industry professionals at the RiskMinds 2nd Annual Conference in Amsterdam on 6 March 2013. His speech focused on economic resilience against severe weather events, climate exposed loss scenarios, addressing the needs of customers and policy-makers and the consequences and opportunities for insurers.
How can insurers help deliver resilient cities?
1 March 2013
As part of the ClimateWise City Relisience Collaboration, Mark Way, Head of Sustainability - Americas for Swiss Re has discussed the importance of urban resilience to the insurance industry and what the sector can do to respond to the numerous increasing risks to our cities - not least climate change related risk.
BBC World Service: The Drowning City
In October last year, Hurricane Sandy ripped into New York, taking lives, sparking a huge fire, flooding subways and tunnel connections and leaving thousands without power for days.
Isabel Hilton reports on the aftermath of the hurricane in New York. As sea levels are predicted to keep rising, she looks at what New York and other threatened coastal cities might do to prepare for future storms.
Insurance Day Big Interview: 'Climate change is a crisis in slow motion'
'For John Coomber (ClimateWise Chairman), the convergence of demographic and climate change risk trends will see the emergence of a new constituency or 'customer' for the insurance industry.'
John Coomber, has been interviewed by Insurance Day on Climatewise's past, present and future as part of their 'Big Interview' series.
Read the interview from page 4 here in the e-magazine edition, kindly provided by Insurance Day.
Climate Change & Insurance: Existential Threat—or Extraordinary Opportunity?
5 February 2013
Property Casualty 360
'While the predicted increase in the frequency and severity of catastrophes will pose huge coverage challenges, many see a big business upside as the world responds to extreme weather.
Of the more than 30 insurance executives interviewed for this report—insurers, agents and brokers, reinsurers, risk managers, association executives and others—there was near-universal agreement that the climate is changing; that severe weather events already are increasing in frequency and severity and that this trend is going to worsen; and that this raw reality requires any organization involved with insurance in any capacity to start taking decisive action now.'
ClimateWise SREX report summary
9 January 2013
ClimateWise has prepared a five page synopsis, giving headlines and implications for insurers from the International Panel on Climate Change (IPCC) Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation (SREX). This is the most significant report to date on the impacts of climate change.
5th Independent Reviewer's Statement: Leading insurers set industry benchmark in response to climate change, according to PwC research
22 November 2012
The fifth independent review of ClimateWise members, conducted by PwC, shows that a leading group of insurers are at the forefront of integrating climate change into business as usual.
Over the past five years, ClimateWise members have made significant advances in research and data used for modelling risk and had considerable engagement with policy makers, highlighting where green investments in mitigation and resilience could save costs for insurers and reduce risks for consumers in the future.
News Release: Insurance and Carbon Capture & Storage report launched
22 November 2012
A new study from ClimateWise could remove an obstacle to Carbon Capture and Storage (CCS), but risk sharing with government is still required.
This 'Managing Liabilities of European Carbon Capture & Storage' risk-management study identifies the potential to remove a barrier to the development of CCS technology at scale in Europe, paving the way for more effective action to prevent climate change. The proposal put forward addresses the problem of unlimited liability associated with the risk of leakage of carbon dioxide from storage sites
The ClimateWise 5th Annual Review is launched
19 November 2012
ClimateWise's 5th Annual Review has been launched.
The Review, independently conducted by PwC, shows that in 2011/12 members achieved record compliance of 92% with the core ClimateWise Principles. Of particular note were advances in research and data for modelling risk, increased engagement with policy makers, and the development of new products and services.John Coomber, Chairman of ClimateWise said:
“Insurers like seat belts, sprinkler systems and fire escapes. Climate change will over time produce major changes in weather related risk experienced by our customers. This will drive a new dialogue with our customers and with government as we seek to build resilience to the new patterns of risk emerging and protect our customers from risk that cannot be mitigated. It is heartening to see progress being made to date by ClimateWise members in pursuit of these goals and their commitment to future action.”
ClimateWise 5th Anniversary event: 13.30 - 17.30 GMT, 22 November 2012, London & Online
The ClimateWise 5th anniversary will be marked by an event in central London at which participants will reflect on achievements so far and look ahead to consider what is needed for long-term leadership. There will be a discussion about how government can support the insurance sector to manage shared long-term risks.
There will also be a presentation of a new report on innovative ways to manage specific liabilities associated with Carbon Capture and Storage. A new proposal from ClimateWise members potentially removes some of the barriers to the development of CCS at scale in Europe, thus paving the way for more effective global emissions reductions.
The 5th anniversary event will be truly international, with active participation by ClimateWise Partners in Brazil and South Africa and members around the globe via an interactive online conference about food security.
ClimateWise marks 5-year Anniversary
16 November 2012
This year marks the 5th Anniversary of the ClimateWise initiative. Since its establishment members have made significant progress towards understanding and responding to the risks and opportunities posed by climate change. The group continues to play a clear leadership role for the wider insurance industry.
ClimateWise Thought Leadership Articles Published by Insurance Day
6 August 2012
The first two issues of the 2012 ClimateWise Thought Leadership series have been published by Insurance Day in two editions of their daily international industry newspaper.
Issue One was authored by ClimateWise Chairman John Coomber and discussed 'moving beyond the uncertainty of climate change risk'. Issue Two was written by Ian Kirk, Santam Group CEO and looks at the value of ecosystem resilience to insurers. Insurance Day has a readership of over 10,000 industry professionals in 70 countries.
ClimateWise Thought Leadership: The value of ecosystem resilience to insurers
21 June 2012
To coincide with the Rio+20 conference, Ian Kirk, CEO of Santam Group has written for the ClimateWise Thought Leadership series on the value of ecosystem resilience to insurers. He also discusses the idea of insurance as a global connector, and the industry's role as a global contributor to socio-economic well-being.
'UNEP FI and world’s insurers launch global insurance principles at Rio+20 to propel sustainable development'
UNEP FI, 19 June, 2012
UNEP FI has launched the Principles for Sustainable Insurance (PSI) at the Rio+20 conference in Brazil. The PSI 'provide a holistic approach to managing a wide range of global and emerging risks in the insurance business, from climate change and natural disasters to water scarcity, food insecurity and pandemics.'
Vanessa Otto-Mentz, Strategy Unit Head at Santam, and a member of ClimateWise and the PSI said:
‘Many organisations are members of both the PSI Workgroup and ClimateWise as their focus is different; PSI is in essence good practice business principles to improve proactive risk management with regards to industry relevant ESG risk factors, while ClimateWise is specifically aimed at collectively addressing the risk of climate change.’
Full details on the PSI and signatories can be found on the new PSI website here: www.unepfi.org/psi/
Third CII Future Risk Report Launched
12 June 2012
The CII has launched its third Future Risk Report: 'climate change and energy security - global challenges and implications'. The report has perspectives from world leading experts on potential future environmental risks, and the implications for insurers and beyond.
New Lloyd's Met Office report published on 'Hurricanes and long-term climate variability'
1 June 2012
Lloyd’s and the Met Office have published a new report examining the latest scientific research on North Atlantic hurricanes. The report entitled “Hurricanes and long-term climate variability” explores how atmospheric climate and ocean conditions influence the formation of hurricanes and what drives them to make landfall. The report reviews research papers from a number of leading organisations, including the Met Office and the National Oceanic and Atmospheric Administration (NOAA).
The report is available at www.lloyds.com/hurricane
ClimateWise Sustainable Claims Management: Sustainable business can provide a triple win
22 May 2012
Insurers work with suppliers to reduce environmental impact in responding to claims worth £2.7bn
At the Association of British Insurers’ Property Conference on 22 May, leading Property Insurers and Underwriters sent a signal to the market that they will be carrying out repairs following damage to property in a way that cost effectively minimises environmental impact while improving customer experience.
For example, careful selection of the most appropriate drying regime compared to a current norm approach indicates potential to reduce:
> Emission reductions in on-site energy use between 26% to 92%
> Average repair duration of 159 days to a range of 51 to 99 days
> Claim costs between 9% to 17%
Companies are signing up to implement ClimateWise Sustainable Claims Guidance which requires insurers to identify the business areas of greatest environmental impact; reduce these impacts through co-operation with contractors, suppliers and customers and report on the difference this is making.
Andrew Torrance, Chief Executive Allianz UK, said:
"For many years, Allianz UK has been committed to reducing the environmental and carbon impacts of its direct operations and we have successfully implemented efficiency measures and engaged our employees in this challenge. We also see an excellent opportunity to address the indirect environmental impacts of our business by working in partnership with our claims supply chain. Our ongoing assessment strongly suggests that this would be beneficial to our business, the organisations we work with, the end customer and society as a whole.”
Companies leading the way include Allianz; Cunningham and Lindsay; The Co-operative and Ecclesiastical.
John Coomber: Moving beyond the uncertainty of climate change risk
16 May 2012
Applying the insurance principles of measurement, mitigation and diversification to the world’s most challenging risk
John Coomber, Chairman of ClimateWise and former CEO of SwissRe writes in a personal capacity for the 2012 ClimateWise Thought Leadership Series.
'The Inherent uncertainty means that every statement made in relation to climate change risk must be caveated, but that is not an excuse for inaction. and suggests three areas worthy of thought for insurers and insurance brokers.'
Read the article here
Fifth ClimateWise Review: Request for Proposals
13 APRIL 2012
ClimateWise is requesting proposals to carry out the fifth independent review of adherence to the ClimateWise principles.
Details can be found here.
The deadline for submissions from interested parties is Tuesday May 8th 2012 at 17:00 GMT.
Links to the previous reviews, referenced in the RFP are below:
Insurance Journal: 'Willis Chief Warns London Audience of Major Risk Increases in 21st Century'
INSURANCE JOURNAL, 9 FEBRUARY 2012
'The 21st century has already witnessed a transformational shift in the global risk landscape, with a palpable change in the severity and frequency of events since 2000, warned Willis Chairman and CEO Joe Plumeri.
Speaking to an audience at the InsiderScope London 2012 Conference, held in the Willis Building, Plumeri called for a “repositioning of the insurance industry as the global leaders on resilience and commercial sustainability for companies, organizations and enterprises facing a future of unknowable risks.”
Willis’ report of the event noted that Plumeri has “viewed the new risk landscape evolving over the last decade from the front lines.” He urged his colleagues to view insurance “not simply as a transaction but rather as the natural business partner for clients achieving mitigation of risk and enabling long-term sustainable growth.”
Asian Insurance and Climate Change Summit – taking a supply chain approach
3 FEBRUARY 3 2012
The Second Climate Change Summit for Asia’s Insurance Industry took place on 30-31st January 2012 in Singapore. In discussing the top global risks idenified by WEF, it was understood that climate change was likely to be a contributor to food, water and energy shortages. Consequently a key theme that emerged was an interest in looking at climate change in terms of risks to supply chains and the need for a better understanding of the concentration of exposure risk to climate change. However the challenge remains to create spaces for collaboration and cross-sector working, especially as industry focus tends to be at the national level.
In this sense the collaborative approach of ClimateWise offers some useful lessons that were shared in a presentation by Katharine Thoday from the ClimateWise Secretariat at CPSL and ClimateWise member Greg Lowe, Senior Sustainability Manager at Aon Limited. Several other presenters also mentioned ClimateWise in the solutions space – particularly regarding discussions around opportunities for increasing low carbon investments and ClimateWise's recent work in this area. Hopefully increased visibility will lead to increased climate engagement by the Asian Insurance Industry.
POST: 'Insurers must influence the debate on how businesses and governments manage risks'
Post Online 24 JANUARY 24 2012
‘Climate change may be increasing the likelihood of natural catastrophes around the world — and for global insurers covering businesses, the challenges are daunting as they seek to provide protection for corporations that have complex supply chains involving multiple countries.
In some regions where, for example, earthquakes are likely, insurers may withdraw and leave cover to governments — but making localised decisions based on a single risk is not relevant when looking at insurance for all weather-related or other natural disasters.
With the structure of some multinational companies, insurers cannot pick and choose which regions they cover — if they want the business, they need to take the rough with the smooth.
And, it is notable that the major global players are focused on providing solutions and insurers, brokers and insurance-specialist consultants have all up-skilled in recent years, in terms of their climate and sustainability employees.
There is more collaboration going on too, with the insurance initiative ClimateWise one example of a global membership covering Europe, North America and Southern Africa focusing on issues affecting emerging as well as traditional markets.’