Geneva Association calls for collaboration to address climate-related health risks

The report highlights the potential long-term consequences on health and life insurance as climate events become more severe and frequent.

The year 2023 marked the warmest on record globally, with widespread extreme heat events observed in North America, Southern Europe, and Asia. Notably, Canada experienced devastating wildfires, resulting in substantial carbon emissions and air quality alerts in parts of the United States.

Whilst the insurance industry's focus on climate risks has primarily centred on property and casualty lines, the implications for health and life insurers are becoming increasingly pertinent as climate events intensify.

Understanding the potential impacts of climate change on health, the report by the Geneva Assocation titled “CLIMATE CHANGE: What does the future hold for health and life insurance?” provides a framework and reviews emerging evidence on epidemiological shifts induced by climate change.

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Despite limited immediate impacts on health and life insurers' liabilities, the report highlights the potential long-term consequences as climate events become more severe and frequent. 

Challenges in quantifying these risks underscore the need for enhanced data consolidation and collaboration across sectors.

Whilst innovative insurance mechanisms like parametric insurance show promise, regulatory considerations and risk assessment complexities must be navigated. 

Insurers are urged to play a larger role in public awareness and policy environments, fostering collaborations to mitigate climate-related health risks.

Recommendations for health and life insurers include assembling multi-sectoral data to understand vulnerabilities, investing in innovation, and actively engaging in public-private partnerships to address climate-related health challenges effectively.