A new report from Ceres has found a "profound lack of preparedness" when it comes to addressing the risks and opportunities associated with climate change issues. The study involved 330 insurers representing approximately 87% of the U.S. insurance market based on direct premiums written. Using a 100-point scale companies were rated in four categories:
- Leading – 75 points or higher
- Developing – 50-75 points
- Beginning – 25-50 points
- Minimal – under 25 points
Of the companies that participated, only 3% (nine companies) received a "Leading" score: ACE, Allianz, The Hartford, Munich Re, Prudential, Sompo Japan, Swiss Re, XL Group and Zurich Insurance. Eight-three percent of the companies (276) earned only "Beginning" or "Minimal" ratings.
The companies were ranked on five core themes that aligned with National Association of Insurance Commissioners' (NAIC) Climate Risk Disclosure Survey:
- Governance
- Risk management
- Investment strategies
- Greenhouse gas management
- Public engagement
The companies were also rated on the overall quality of their responses to the survey questions.
Larger insurers were more prepared than smaller companies when it came to climate risk management practices.
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