The global reinsurance market with its 400bn USD of insurer risk mitigation revenue, pays for a significant portion of large events and accidents across the globe.
Many of these incidents affect large corporates, are usually high-profiled, and come with significant physical damage. Examples include total loss of offshore oil rigs or other floating vessels and ships, large real estate fires or explosions in industrial plants.
The settlement of these losses naturally come with a significant carbon footprint.
Settling large claims in a carbon efficient manner
There is an obvious opportunity in settling these large claims in a carbon efficient manner focusing on using low emission materials and technology.
Another interesting opportunity is linked to the future operation of the new/repaired plant, vessel or business in question. If, say, the new plant is producing as many smartphones as before, but with a lower carbon footprint, then this insurance loss could even have a positive impact on the route towards net zero.
Generally, as loss adjusters and claims departments around the globe have such an instrumental role in how so many of our physical assets are being repaired, their skillset can be used to optimize carbon footprints as part of their objectives. This spans the full claims handling spectrum from supplier purchasing agreements to individual claims negotiations.
Reinsurers could play an effective role in motivating their customers, the insurers who actually settle these claims, to reduce carbon footprints.