Insurance and Risk Management Services for Managing Climate Change Risk: Financing a Clean Energy Growth Economy

This is the third briefing in a series on how the transition to a clean energy growth economy with lower GHG emissions will be financed.

Document Highlights

According to the Insurance Bureau of Canada, Canadian insurers are now facing claims on natural catastrophes (floods, forest fires, and other extreme weather events) of approximately $1 billion annually—up from $400 million annually in earlier decades. This third briefing outlines how future government spending on flood relief and recovery could be contained through concerted action on a combination of factors. It also suggests how insurers can help manage risks related to climate change, and to underpin the transition to a clean growth economy. The briefing’s takeaway is that new risk management products are emerging—and will emerge—that can help to share and manage the insurable risks of climate change and adaptation.