Climate change impacts insurance companies on two fronts. The first is on the payment of claims (due to more extreme weather events) and the second is the impact of climate change on the assets owned by insurers. After collecting premiums, investment income is typically the largest revenue source for insurers.
The infographic below explains how climate change can affect the investments of insurance companies as these companies are often large investors in the mining and oil sectors.
Also important to note is that insurance companies can become a force for change by redirecting their investments away from carbon-intensive sectors to renewable energy where many new opportunities await.
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