‘Insurers have a key role to play in the transition to net zero’

The Geneva Association and the Organisation for Economic Cooperation and Development (OECD) co-hosted a high-level conference on recently titled ‘Future-Proofing Technological Innovations for a Resilient Net-Zero Economy’, with the aim of providing input for the discussions that will take place at COP26 in Glasgow.

The strategic, multi-stakeholder conversation brought together CEOs and senior officials from the insurance industry, financial sector, engineering community, government, United Nations, OECD, World Economic Forum, and World Business Council for Sustainable Development.

An unprecedented transformation across society and economic sectors is needed to achieve ambitious net-zero targets over the next few decades. Expanding and deploying technological innovations will be critical. “The confluence of post-pandemic reconstruction, the climate crisis and social imbalances from technology and globalisation, is a historic opportunity for shaping a technological and institutional revolution that can unleash a smart, green and fair golden age for all,” said Professor Carlota Perez, world-renowned expert on technological revolutions.

There are myriad risks associated with the deployment of untested technologies. As the world’s risk managers and a significant source of investment capital, the role of insurers will be essential to scaling up technological solutions. Jeffrey Schlagenhauf, deputy secretary-general of the OECD, said “The successful transition to a net-zero economy will require a complete transformation of the technologies used across all sectors of the economy. Insurance regulators and supervisors have a critical role to play in creating an enabling environment that facilitates insurance companies’ capacity to support this transition as underwriters, risk managers, and providers of the needed capital investment.”