Sep 30, 2020

Insurers get serious over climate

Climate Change
Joanna England
3 min
Climate change poses a unique challenge to insurance companies, a new report suggests
Climate change poses a unique challenge to insurance companies, a new report suggests...

Climate change poses a unique challenge to insurance companies, a new report suggests

A new report by BCG on the climate change impact to insurance companies, has revealed that the environmental crisis is causing large shifts in the industry. 

According to the report, climate change is not only posing greater challenges in terms of claims and underwriting, but also the direction insurers take when investing in products and portfolios. 

Additionally, the COVID-19 pandemic has caused greater disruption by intensifying the sense of urgency surrounding climate change, by an estimated 70%. Meanwhile, 87% of companies surveyed, felt that companies should include environmental concerns into their insurance products. 

Risk assessment

The first challenge is underwriting and assessing risk. As global warming leads to an increased frequency in natural disasters and resulting claims, insurers, who have based their products on historical data, now find themselves in unchartered territory. 

Risk models no longer accurately reflect the level of todays, or tomorrow's risk. For example, data from the CRO Forum suggests an estimated US$15trn in assets could be at risk from coastal flooding alone. 

In addition, some industries are facing “stranded assets” that have lost value and are no longer producing income. The report refers to the Paris Agreement, which it estimates will result in up to $4trn of oil and gas assets being “stranded” by 2030.


How insurers can advance efforts to address the climate crisis, is another concern. As a result, companies are leading the way by supporting climate progress. The insurance industry holds pole position when it comes to mobilizing action with customers in the underwriting process. Insurance companies can also take an active approach to investing in assets that thrive because of climate change. 

For example, the global demand for electricity is estimated to grow as much as 30% over the next decade. Experts believe this will also result in $23trn in renewable energy investments in emerging markets by 2030. BCG identified four areas in which leading insurers could combat the climate change challenge.

  1. By underwriting a portfolio that supports action towards climate change.
  2. By adopting investment practices and tactics that drive climate progress. 
  3. By actively working with clients to reduce emissions for internal company operations.
  4. By showing transparency regarding the company’s climate-related risk and promoting efforts to support climate action. 

An excerpt from the report explains; “An insurer that wants to develop a coherent climate strategy should articulate a clear ambition for its effort, identify steps to incorporate that ambition into the company’s core business and operations, and make sure that it has the right enablers for success, including strong leadership and engagement, governance, and robust measurement and incentives.”

Leading the way

The report concluded that insurers should position themselves as leaders when it comes to climate change management. Adopting policies that incentivize customers to have better investment in renewables and re-structuring products to reflect the importance of climate change, will help the industry grow and mature in this relatively new and changing field. 

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Jun 16, 2021

Tribe and APOLLO announce national insurance campaign

2 min
Tribe Property Technologies and APOLLO Insurance have launched a campaign to digitise insurance access across Canada

Tribe Property Technologies in partnership with APOLLO insurance has announced a national insurance campaign to digitise insurance for condominium owners, renters, landlords, and developers across Canada. The aim of the campaign is to make insurance access easier and faster for owners while improving the coverage and protection of condominiums and rental buildings.

According to several surveys, nearly half of 4.5mn rented houses in Canada do not have tenant insurance protection, meaning those individuals and their families are put at risk of fire and water damage. 

What does the national insurance campaign include? 

According to Tribe, the company is working with APOLLO to ensure that this type of insurance is easier to access. It aims to achieve this by introducing a direct connection to APOLLO's insurance technology from both Tribe's strata and condo management platform and rental software to allow for increased education and awareness for owners into insurance risks and options. 

It also includes the future ability for notifications for mid-term cancellations, and plans to offer protection from potential strata/condo corporation deductibles, Tribe said. 

"We are excited to partner with APOLLO to bring accessibility, visibility, and education around insurance options to our communities and reflect the current lifestyle expectations of condo owners and residents while protecting the value of their biggest assets", said Joseph Nakhla, Chief Executive Officer of Tribe. 

Nakhla added: “This agreement with APOLLO is just the first step under our Digital Services & Partnerships revenue pillar. We will continue to layer on services to drive revenue for Tribe, and bring convenience and savings for our users, with the goal of being able to offer a one-stop-shop to our development partners and the over 100,000 residents in Tribe-managed communities”.

APOLLO uses technology as a channel between insurance brokers, carriers, and their mutual clients, offering insurance options from multiple companies on one integrated online platform.

"We like that Tribe is taking a fresh approach to condo living and building smart homes through tech-enabled service, and an integration with their Community Platform supports our goals of making insurance more accessible and supporting the needs of communities”, said Jeff McCann, Chief Executive Officer of Apollo.


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