Ping An-led report explores climate change’s toll on insurance
Ping An-led report explores climate change’s toll on insurance | Insurance Business Asia
Environmental
Ping An-led report explores climate change’s toll on insurance
Insurer’s sustainability initiatives highlighted
Environmental
By
Roxanne Libatique
Ping An Insurance (Group) Company of China, Ltd has collaborated with several institutions to release a report titled “Climate Change Adaptation and Disaster Risk Management: Current Practices and Future Perspectives for the Insurance Industry.”
This report – developed in partnership with Southern University of Science and Technology, Tsinghua University, Risk Lighthouse International, and Ernst & Young (China) Enterprise Consulting Co – explores the impact of climate change on the insurance industry.
Impacts of increased frequency of natural disasters
The report highlighted the challenges posed by the increased frequency of natural disasters, which are linked to long-term climate change. It emphasised the growing financial burden on insurance companies due to heightened compensation claims and payout obligations resulting from these catastrophic events.
The document reviewed how insurers, both in China and globally, are responding to these challenges and provides policy recommendations aimed at improving climate risk resilience.
Additionally, it featured insights into Ping An’s efforts in sustainable development and its strategies for addressing climate change, presenting a multi-faceted analysis of how the insurance industry can transform these challenges into potential growth opportunities.
Richard Sheng, board secretary and brand director at Ping An, pointed out the escalating occurrence of extreme weather events globally.
Ping An’s sustainability initiatives
Sheng said that Ping An was committed to leading China’s insurance industry in addressing climate change and supporting sustainable development.
Ping An has been actively promoting sustainable development through its business activities. By the end of 2023, it reported green insurance premium income of RMB37.3 billion, reflecting a nearly 49% increase year-on-year. Its green loan balance reached RMB146.3 billion, a 25.7% rise from the previous year, while green investments in insurance funds totalled RMB128.6 billion, up 19% year-on-year.
Looking ahead, Ping An said it will continue its focus on sustainable development within the insurance industry. It intends to develop and expand products related to green insurance and climate risk insurance, collaborating with government agencies, the broader insurance industry, public institutions, and research organisations to enhance society’s resilience to climate-related risks.
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