Measures that need to be taken by the insurance industry

More than two-thirds of all natural catastrophe losses in recent decades were caused by weather events. According to the trends that have been calculated, their share is even expected to increase.

Against this backdrop, Munich Re's declared objective is to combat further climate change by means of the following measures:

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  Inform clients and authorities on climate-relevant factors
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  Create financial incentives by means of appropriately designed agreements with cedants (possibly limiting the scope of cover)
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  Promote "climate-friendly" insurance products (e.g. in motor liability insurance)
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  Carry out environmental audits in environmental liability insurance
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  Consider environmental and sustainability aspects in the context of investments
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  Promote climate protection projects
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  Compile environmental reviews (input and output balance sheets) for our own business operations and real estate, and maximise the potential for improvement
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  Pursue prospective rather than retrospective underwriting; premium development that "lags behind" leads to increasing underwriting losses; prospective underwriting takes future developments into account in that premiums are adjusted to forecast trends.