Wednesday, August 27, 2008

Allianz on adaptation

The German insurer Allianz has recently expanded their public material on climate change adaptation. They have an interview with Martin Gansneder, Allianz Climate Solutions, Center of Competence for Climate Change: Why should an insurance company think about climate change adaptation?

We are affected through higher claims, especially in the property insurance, and the variability of these claims is also rising. We could simply adapt our underwriting policies and pricing models, but that would mean that some customers could not afford insurance any more. So, it is in our interest to offer our customers ways to adapt to climate change, avoid excessive losses, and even participate in mitigating climate change.

How do you help consumers mitigate and adapt to climate change?

First of all, we give them the possibility to improve their energy efficiency and save money. This also helps protect the environment, because less carbon dioxide is emitted. In Germany, Allianz offers an Energy-ID program, which includes consulting, finance, and assistance to improve the energy efficiency of homes and offices.

We also support adaptation to climate change. Even traditional storm insurance covers against certain impacts of climate change, but it would be certainly greenwashing to offer it as a climate change product. We must go further and cover new risks like changing weather patterns. Many customers sometimes face a very warm winter one year and a very cold winter the next. With weather derivates [sic], we can protect them against these changing whether phenomena....

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