While the insurance industry’s divestment from “dirty” industries may prove beneficial for climate risk mitigation in the long-term, this change cannot happen overnight. Insurers can’t treat the great energy transition like a light switch: on one day, off the next. As Lloyd’s of London states, managing and mitigating the impacts of climate change requires “an orderly, but urgent transition” away from carbon-emitting fuels.
“Orderly, but urgent” – I like that phrase, and from my 30,000-foot view of the industry, most insurers are taking an “orderly” approach to the energy transition. Granted, some insurers are moving significantly slower than others, but