Most insurers know that utilizing the pricing mechanism is key to powerful and quick changes, and the use of carbon pricing in all its shapes and forms is the key lever being utilized across geographies and sectors to reach net zero. We are convinced that there are material and growing consumer segments who would embrace this net zero value proposition. Also, there is always the possibility that governments will impose carbon taxes on motor insurance.
Motor insurers, according to our estimates, contribute ~15% of the revenues of the global automotive industry, through repairs and cash settlements of insurance losses. Under the assumption of proportionality, this indicates that ~0.5% of all global carbon footprints stem from motor vehicle repairs and cash settlements from insurers.