The Forum for Insurance Transition to Net Zero (FIT) has launched the first-ever global guide on transition plans for insurance companies at COP29 in Baku, Azerbaijan.
FIT’s inaugural report – ‘Closing the Gap: The emerging global agenda of transition plans and the need for insurance-specific guidance – assesses key features of insurers’ underwriting portfolios, which need to be taken into account in transition planning.
The report argued that the insurance industry has a triple role as risk managers, risk carriers and investors in supporting a just transition to a net-zero economy, which includes addressing climate-related sustainability issues of protecting nature and biodiversity and preventing pollution via a circular economy.
Bianca Tetteroo, chair of the executive board at Achmea, said: “Through transition plan guidance, insurers can enhance their strategic decision-making, align their operations with sustainability goals, and better prepare for regulatory changes.
“Ultimately, transition plans not only mitigate risks but also enable insurers to seize emerging opportunities in a low-carbon economy, ensuring long-term resilience and success.”