WASHINGTON—The insurance industry is in most cases outof touch on climate control issues, according to a new study.

Insurers predominately fail to address climate change issues andthe opportunities to develop new products to deal with it, thestudy says.

The study found there is “a profound lack of preparedness” inaddressing climate-related risks and opportunities.

Moreover, “Given the insurance sector’s key role in addressingsocietal risks, this near total silence on climate change is deeplytroubling and is thwarting constructive public engagement onappropriate responses,” the study found.

The comprehensive, scientific study was conducted by Ceres, anonprofit organization advocating for sustainability leadership. Itwas released this week.

The paper, which was “peer-reviewed,” i.e., checked for accuracyby outside researchers, said that that there is strong scientificconsensus on climate change, and that the insurance industry is onthe “front line” of those affected. And, industry liability isincreasing, not declining, the paper says.

At the same time, the study found that only eight property andcasualty reinsurers and one life insurer were considered to haveimplemented leading practices in climate change management.

The nine insurers cited as on the front lines on climate controlissues were ACE, Allianz, The Hartford, Munich Re, Sompo Japan,Swiss Re, XL Group and Zurich Insurance, among p&c reinsurers,as well as Prudentiala life and annuities insurer.

The 330 companies contacted on the survey, which was conductedwith the help of the National Association of InsuranceCommissioners, represent about 87 percent of the U.S. insurancemarket by direct premiums written, the study found.

The study found that P&C insurers “demonstrated far moreadvanced understandings” of the risks that climate change poses totheir business, and “are much further along” in developing toolsneeded to manage climate change risks when compared to the life andannuity and health insurance segments.

Indeed, the study found that, despite increased evidence thatextreme heat waves and other climate-related impacts will influencemorbidity and mortality trends, life and health insurers show“widespread indifference” to climate risk, both in regard to theircore business lines and their investment strategies.

A key finding of the report was that “barely 10 percent of theinsurers overall, 38 of 330 companies,” have issued public climaterisk management statements articulating the company’s understandingof climate science and its implications for core underwriting andinvestment portfolios.

The study also found that larger insurers showed strongerclimate risk management practices than smaller companies.

The P&C insurance sector is on the "front line" of climatechange risks, and the evidence suggests that those risks are on therise. The report noted that rising sea levels and extreme weatherevents will cause an increasing amount of damage to a large amountof both insured and uninsured property. But, the P&Cindustry's reaction has just been to limit coverage or withdrawentirely from catastrophe-prone markets, the report said.

The report suggests that climate change will increase the needfor insurers and regulators to promote risk-based pricing based onescalating risks, but that despite these risks, most P&Cinsurers are still not addressing climate riskscomprehensively.

For life insurers, climate change poses risks through theirinvestment portfolios.

Life insurers should consider how global warming will affecthuman health and mortality - as growing air pollution impacts onvulnerable populations - and take into account the risk of extremeweather and wildfire.

Despite these concerns, the life and annuities segment'sresponse to climate risks is "materially inadequate," the reportsaid.