Regulation is key to a climate-resilient insurance market: how regulation can balance insurer interests and public resilience in the face of escalating climate risks

Climate change is testing whether insurance can protect the people who need it and whether the insurance industry itself can survive. Yet insurers continue to invest trillions of dollars in the very activities driving climate change.

Regulation can shape both outcomes. It decides whether insurers hold enough money to pay their claims and whether people can get and keep cover they can afford.

We scored the insurance regulation of seven jurisdictions on how well they manage both sides of climate risk: protecting insurers from climate change and protecting people through insurance. No regulator in the world yet manages both sides well.

Our findings show that regulation protects insurers far better than it protects people. This gap can, however, be closed by adapting what is already working well in some places. This report shows where and how.