08 November 2022

GFIA calls for collective action to prevent loss of life and reduce economic losses

The Global Federation of Insurance Associations (GFIA) calls on the parties at COP27 to prioritise adaptation and the building of resilience to the impacts of climate change. GFIA reaffirms its commitment to fostering international dialogue and action to address climate change and its impacts.

On the occasion of the COP27 UN conference:

GFIA represents insurers and reinsurers from 67 countries, ranging from small local players to internationally active groups. Many (re)insurers support the goals of the UN’s 2015 Paris Agreement at company level, through their participation in local or global financial sector net-zero alliances and through a wide variety of other actions.

The World Meteorological Organization reports that the number of climate-related disasters has increased fivefold over the last 50 years. According to the UN, the last seven years were the warmest on record globally, and the frequency and duration of droughts has increased by almost a third in 20 years.

The global impact on people, health, property, businesses and the environment from more frequent and severe extreme weather events is well documented. Insurance and reinsurance play a critical role in accepting the transfer of some of the risks these events present, but the gap between (re)insurance cover and wider economic loss is significant in many parts of the world.

Closing this protection gap requires a reduction in losses by investing in adaptation measures that mitigate risk. Without this, the gap will widen and so will the trauma for millions of people.

GFIA’s (re)insurers are playing an active part in responding to the challenges created by the impacts of climate change. (Re)insurers are key players at local, national, regional and international levels, contributing to climate adaptation and mitigation and risk reduction. Serving policyholders at all the milestones in their lives, (re)insurers play a crucial role in addressing climate-related risks, primarily through their measuring, pricing and assumption of risk and thus through their payment of insured claims — including life and health claims — from common and catastrophic events. Through their investment activities, they help the transition to greater sustainability of the real economy and climate action to meet the goals of the Paris Agreement.

Because of their awareness of the increasing potential for catastrophic weather risks as a result of a changing climate, (re)insurers recognise the need for society to adapt to the coming changes....

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