Key takeaways from the EU Global Sustainable Insurance Summit 2024

Head of Sustainability Johnny Meehan and Consulting Director Niamh Doyle attended the Summit last week. After a day of insightful panel discussions and engaging conversations, they summarise several key takeaways from the summit: 

• Central Bank of Ireland's regulatory approach: Climate change now impacts all aspects of the Central Bank of Ireland’s mandate. As a result, climate and environmental risk management are integrated into every facet of their regulatory work. 
• The role of the insurance sector: The insurance industry must serve as both a risk manager and investor, acting as a financial shock absorber while also supporting sustainable economic activities. 
• Transition plans: Well-designed and transparent transition plans are critical. Increasingly, private sector transition plans should be aligned with national Climate Action Plans. The best plans highlight dependencies on public policy and encourage dialogue with public actors. 
• Insurance partnerships: Large insurers are often not incentivized to innovate or take on more risk. To overcome this, they should partner with smaller, more agile insurance start-ups, leveraging their innovative approaches. 
• Prerequisites for innovation and investment: For innovation to flourish, policymakers must make it clear that target commitments will remain consistent over time. Insurers need assurance that stable, long-term policy will support their investments in emission reduction efforts. 
• Claims management as a lever: Integrating sustainability into claims management processes can help reduce carbon emissions and foster positive engagement across the value chain, including with end consumers. 
• Adaptation finance for the Global South: Adaptation finance must be directed to the regions most affected by climate change, particularly poorer countries. As one speaker poignantly noted, "We measure flooding in millimetres; they measure flooding by body parts—knee high, shoulder high, head high." The severity of these challenges cannot be ignored, and the insurance industry can play a crucial role in addressing them. 
• Insurance as a gateway to financing: A key quote from AXA Group CEO Thomas Buberl underscored insurance’s essential role in the financial ecosystem: “Without insurance, there is no financing.”

The summit underscored the insurance industry's critical role in addressing global climate challenges. It highlighted the need for collaboration, transparency, and long-term commitment from both the private sector and policymakers to drive meaningful change. As the industry continues to innovate and adapt to the realities of climate risk, it is clear that sustainable insurance solutions will be integral to building a resilient future for all.