Sustainable insurance: What does climate neutrality mean for German insurers?

Sustainable insurance: What does climate neutrality mean for German insurers?

According to a report by FAZ.net, the economic expert analyzes the current state of the insurance industry in terms of sustainability. Although the insurance industry wants to become climate neutral by 2045, many board members are unsure what this actually means. Only a few large international insurers such as Allianz, Munich Re, Zurich and Axa have already taken measures to achieve their sustainability goals. Some insurance companies such as Barmenia and Gothaer have already taken a pioneering role in sustainability due to their business models.

Gothaer has specialized in insuring wind turbines and is now the market leader in this area. The company has also used its knowledge of renewable energy to make more sustainable investments. Gothaer has recognized that sustainability is a global task that must be mastered over the next few decades. Board member Oliver Schoeller describes the common denominator as the obligation to leave an intact world for the next generation.

The economic expert analyzes the strategic conclusions that Gothaer has drawn from the climate and biodiversity crisis. The company has aligned its capital investments, its insurance business and new business areas to sustainability criteria. Sustainability is viewed as a reliable megatrend that opens up growth prospects. Europe has no choice but to make sustainability a cornerstone of its new business model. The effects of climate change and the desire for prosperity are the driving forces behind the emergence of sustainable markets. Technological solutions are needed to meet this need.

The effects of these developments on the market and the insurance industry are diverse. An increased focus on sustainability can lead to insurance companies having to develop new business areas and adapt their portfolio. The changes in the energy sector and rising energy costs may lead to partial deindustrialization, while at the same time supply chains remain strained. Companies also have to adapt to the shortage of skilled workers and find sustainable solutions to achieve their growth goals. Overall, the sustainability megatrend also offers the insurance industry new opportunities and growth prospects.

Source: According to a report from www.faz.net