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The concept of "impact underwriting" is not sufficiently well-defined to assess what effects it could have on the availability and affordability of insurance. What is clear, however, is that a more proactive approach to climate change, prioritising prevention, risk reduction and resilience building, is essential for maintaining insurability and affordability.
Focusing only on pricing and deductibles will not constructively contribute towards tackling challenges and improving climate change adaptation, mitigation and prevention. Coordinated industry solutions and public/private partnerships, however, do have an important role to play.
Insurers, in addition to transferring and pooling climate change-related risks, also contribute to reducing exposures to climate risks through the features of their products and their investment strategies.
It is also important to note that the assessment and pricing of risk must remain exclusively risk-based and any changes to the regulatory