MainDB: New insurance products and climate risk

Title: New insurance products and climate risk
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NWPGeographicRegion: Africa; Asia; Caribbean and Central America; Europe; North America; Pacific/Oceania; Polar regions; South America
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Adaptation element: Financial support; Impact assessment; Science and research
Adaptation sector/theme: Agriculture; Food security; Water resources; Biodiversity; Health; Disaster risk reduction; Infrastructure; Human settlements
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Country: United Kingdom of Great Britain and Northern Ireland
NWPDataSource: PSI
Description: HSBC, a global financial services firm headquartered in the UK, has developed a range of responses relating to climate adaptation, from both a risk perspective and in terms of opportunity. On the risk front, it released the HSBC Climate Vulnerability Assessment, which maps risk for the G20 in 2020 from expected climate impacts, in terms of food losses, water stress, and rising healthcare costs. This assessment is intended to advise both the bank and its clients on looming risks, but can also help to shape future products.
 
One clear example is the bank’s entry into the crop insurance market, developing, together with Allianz, a German insurance and financial services group, an offering for Brazilian farmers, to help them deal with climate-related losses.
 
HSBC has also established a climate change research facilitation programme with the UK Met Office, which will allow fund managers to make more accurate assessments of the climate risks and impacts across their investment portfolios. This is part of a major effort by HSBC to assist fund managers in understanding the broader impacts of climate change on investments.
Expected outcome: HSBC is developing a detailed understanding of the physical risks of climate change to help the bank maximise the opportunities that arise, such as the marketing of new products, and focus on how best to respond to the risks. Physical risks to fixed assets and infrastructure from storm damage or flood, impacts on supply chains from increasing scarcity of natural resources such as water, and shifting patterns in demand for goods and services could all potentially become material factors as a part of a bank’s assessment of corporate credit risk.
Further information: Further information: http://www.hsbc.com/
Find the case study summary here: https://unfccc.int/files/adaptation/nairobi_work_programme/private_sector_initiative/application/pdf/hsbc.pdf
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NWPInformationType: Case study
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NWPPartner: HSBC Holdings plc
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NWPReferences: Adapting to an Uncertain Climate: A World of Commercial Opportunities (UK Trade and Investment): https://group.skanska.com/4a0216/siteassets/sustainability/environmental-responsibility/energy/final-report_adaptation.pdf
Business Leadership on Climate Change Adaptation: Encouraging Engagement and Action (PwC): https://pwc.blogs.com/files/encouraging-engagement-and-action-full-report-publication.pdf
Future Proof: Preparing your business for a changing climate (CBI): https://www.climate-expert.org/fileadmin/Ressources/Background%20Reading/2009%20CBI%20-%20Future%20Proof%20Preparing%20your%20business%20for%20a%20changing%20climate.pdf
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Created at 21/04/2016 11:45 by Roberto Felix
Last modified at 11/05/2022 02:55 by Nicholas Hamp-Adams
 
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