As climate-related events continue to ravage Australia, one MD has called on the insurance industry to act, saying the issue is among the most important currently facing the planet.
“Our urgent fight to mitigate the effects of climate change is a big issue facing the world today,” said Stefan Feldmann (pictured), ASEAN and Australasia regional head for HDI Global.
“Catastrophic climate-related events have already had a massive impact on the global insurance and reinsurance markets, and a warming world increases the frequency and intensity of bushfires, cyclones, floods, heatwaves and other extreme weather events.”
While the situation is certainly a dire one, Feldmann said the insurance industry is perfectly placed to make a real difference when it comes to driving sustainability.
“The insurance industry can play an active role in accelerating and scaling up the transition to a low-carbon economy,” he told Insurance Business.
Looking specifically at HDI Group, Feldmann said the business refined its sustainability strategy in 2019 and made a public demonstration of its commitment by signing up to the United Nations-supported Principles for Responsible Investment (PRI) program.
“At the same time, we have decided to operate with a net zero carbon footprint in Germany from this year onwards,” revealed Feldmann. “Both initiatives form part of our updated, more focused sustainability strategy, which takes a holistic approach to operations, investing activities and underwriting – while also including social aspects.”
Feldmann also noted that, under HDI’s new underwriting policy, the business will no longer insure any risks for newly planned coal-fired power stations or new coal mines – as a matter of principle.
“Since coal can only be phased out responsibly in the medium to long term, the HDI Group’s goal is to no longer have any coal-fired power stations or coal mines in its portfolio by 2038,” he said.
While HDI is clearly taking meaningful steps to operate in a more sustainable way, Feldmann says the same can’t necessarily be said about certain international players.
“It has become quite apparent that European insurers are taking their responsibility far more seriously than North American companies,” said Feldmann. “Customers will ultimately wake up to this fact.”
