The post cites an article by Marc Gunther on CNN Money, “Insurance companies take on global warming” that addresses the current
interest by insurers in climate change. Some of the largest insurers, Marsh (MMC), AIG (AIG) and Allianz AZ (AZ) have taken notice.CERES, a coalition of environmental groups and institutional investors, “has just published a report on the insurance industry and climate change that argues that the industry has a long-term interest in addressing the risk of global warming, and that it can make money by designing products designed to mitigate against climate change.”
Some of the ways in which insurers are dealing with global warming is from the complex, “wind derivatives”, to offering “Pay-as-you-drive auto insurance” and discounts in car insurance rates for owners of hybrid cars.
On the most basic level everyone should do as little or as much as they can to reduce global warming but huge multibillion-dollar conglomerates such as insurance companies should put every effort towards reduction in global warming.
As Gunther writes, “insurance companies have made the world a safer place - by promoting fire prevention, lobbying for building codes, testing the crash-worthiness of cars and rating vehicles for safety.” Now they should continue to participate in a healthier future for everyone by making a contribution towards improving the world’s climate.
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