Insurers must adapt to energy transition
Source: Asia Insurance Review | Mar 2024
The insurance industry runs the risk of disappearing if it does not adapt to climate change and the ESG agenda according to risk managers.
Lafarge Cement France head of risks and insurance Arnaud Bergauzy addressing an AMRAE conference said adapting implies offering buyers the insurance coverage they need to transition their businesses to cleaner production processes, something that is not happening today.
He said, “In 30 years, the insurance industry as it is today will be dead. Today, insurers are not taking properly into account the urgency of the climate emergency. The market must change to survive.”
Mr Bergauzy said his argument has two main elements. First of all, climate exposures are growing fast and underwriters will have to adapt to this reality in ways that may not be too popular with clients.
On the other hand, companies are being forced to invest in the energy transition, implementing new production processes and technologies, but insurers are not always keen on helping them by offering adequate covers.
“Many French risk managers are not happy with the services offered by their insurers. We do not feel supported by our insurers in the energy transition,” he said. A