Global insurers unite to tackle climate risk with launch of Geneva Association Task Force

Zurich, Switzerland (ots/PRNewswire) - - The Geneva Association has mobilised
experts from 17 of the world's largest P&C and life insurers, representing the
companies of its CEO members, to develop and hone climate risk assessment
methodologies and tools for the insurance industry.

- The first report of the task force presents an integrated decision-making
framework for climate risk assessment that considers four dimensions: 1)
business line (P&C versus life); 2) side of balance sheet (assets versus
liabilities); 3) time horizon (short-medium- versus long-term); and 4) type of
risk (physical and transition). The report sets the stage for the task force to
drive innovations in this space.

- The task force will be engaging with regulators, supervisors, rating agencies
and the scientific community to identify the most appropriate approaches.

The Geneva Association's new report, Climate Risk Assessment for the Insurance
Industry (https://www.genevaassociation.org/research-topics/climate-change-and-e
merging-environmental-topics/climate-change-risk-assessment) , finds that, for
both P&C and life re/insurers, climate change poses different levels of physical
and transition risks to both sides of the balance sheet, liabilities and assets.
Climate risk assessment requires qualitative and quantitative approaches over
short- and long-term time horizons and must account for uncertainties associated
with transitioning. Knowledge sharing across companies and with other
stakeholders is critical to raising risk awareness and leveraging all available
expertise.

Jad Ariss , Geneva Association Managing Director, said: "In 2020 alone, the
world witnessed massive wildfires in California and Australia, historic floods
in China and a record hurricane season in the Atlantic. The societal impacts of
climate change have become ubiquitous, and individuals and institutions must
fully commit now to confronting the climate crisis. Insurers are obvious, strong
leaders on global climate action, given their core functions - managing risk and
investing - and our industry-led initiative demonstrates that they are
proactively rising to the occasion."

Maryam Golnaraghi , Director Climate Change and Emerging Environmental Topics
and project leader, said: "This initiative is taking the insurance industry's
climate action and collaboration to the next level. Building on lessons learned
from previous pilots and initiatives, our task force is focused on advancing
climate risk assessment and scenario analysis anchored in companies'
decision-making, in line with the recommendations of the Task Force on
Climate-Related Financial Disclosures (TCFD). Our first report lays the
foundation for us to design and test methodologies and tools - in collaboration
with regulators and the scientific community - to converge on robust solutions
for P&C and life insurers."

Global re/insurance companies represented on the task force: Achmea, Aegon, AIG,
Allianz, Aviva, AXA, Chubb, Daichi Life, Hannover Re, Intact Financial,
Manulife, MetLife, Munich Re, Prudential Financial, SCOR, Swiss Re, Tokio
Marine.

The task force will continue its work analysing the insurance regulatory
landscape related to climate risk and conduct a technical 'deep dive' to develop
scenario analysis and qualitative and quantitative tools.

About The Geneva Association

The Geneva Association is the only global association of insurance companies;
its members are insurance and reinsurance CEOs. Based on rigorous research
conducted in collaboration with its members, academic institutions and
multilateral organisations, The Geneva Association:

- Identifies and investigates key trends and risk areas that are likely to shape
or impact the insurance industry and develops corresponding recommendations for
the industry and for policymakers;

- Provides a platform to its members, policymakers, academics, multilateral and
non-governmental organisations to discuss these trends and recommendations;

- Highlights the positive contributions of insurance to a better understanding
of risks and to building more resilient and prosperous economies and societies -
in both developed and emerging countries - and thus a more sustainable world.

In total, the companies of Geneva Association members are headquartered in 25
countries around the world; manage USD 17.1 trillion in assets; employ 2.4
million people; and protect 1.8 billion people.

Contact:
Pamela Corn
Director Communications
[phone]
[e-mail]

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OTS: The Geneva Association, Zurich