Investing for Resilience

Investing for Resilience explores the relationship between the insurance industry, its investment activities and its potential support for resilience-enhancing investments.The report finds that insurers are not the natural investors in resilience many external commentators believe them to be. While there is a strong customer-oriented motive to improve resilience to climate risks, through good risk management, there is not yet a direct relationship between direct investments in resilience-enhancing investments (such as infrastructure) and increased underwriting profits. 

The report identifies numerous ways that insurers can support investments in climate resilience more broadly across the financial markets. The report also highlights how there is currently no effective method for measuring the resilience of investments, of property, of municipalities, of corporates etc. The development of a widely applicable resilience rating system would enable the consideration of resilience across multiple areas of decision-making, including asset management, policymaking, and risk management.

The insurance industry, with its array of stakeholders and involvement in so many spheres of economic activity, is well placed to help lead and coordinate increased investments in resilience. This could lead to many new commercial opportunities for the industry.