GREEN INSURANCE
Machine learning models are being trained on vast datasets to identify correlations between ESG performance and insurance risk , allowing for more nuanced pricing and product design .
Rachel outlines the challenges and opportunities facing the insurance sector : “ The bigger challenge is that the world has to decarbonise quickly and we need a multitude of solutions . The world needs to decrease emissions by 5 % every year to 2030 – this is not happening currently , indeed emissions rose last year . The solutions needed are both technological but also nature based solutions will play a big part of this .”
“ In terms of supporting transition , understanding and embracing what decarbonisation means for the sectors we operate in is important as I described above . To this extent we for example have developed new insurance for the operations involved in carbon capture and storage techniques which are being developed and built now in the UK .”
The role of nature in climate change mitigation Rachel adds : “ The ocean ’ s role in the fight against climate change is recognised to be important but gets insufficient attention . 1 % of climate finance goes to oceans , yet seas have absorbed 90 % of human induced heat since industrial times and know to a material carbon sink .”
“ We were introduced to the subject of seabed carbon through Blue Marine Foundation . We learnt of the lack of research into this important carbon
“ The ocean ’ s role in the fight against climate change gets insufficient attention ”
RACHEL DELHAISE GROUP HEAD OF SUSTAINABILITY , CONVEX GROUP
store and so this led to the creation of the Convex Seascape Survey , a fiveyear research programme led by the University of Exeter that is quantifying the carbon sequestered in the seabed . It ’ s a global project with a dozen or so universities engaged in it around the world .”
The rapid pace of technological innovation in green insurance is not without its challenges . Insurers must navigate complex regulatory landscapes , address data privacy concerns , and ensure the reliability and fairness of AI-driven decision-making processes . However , the potential for technology to drive positive environmental change through insurance is immense , promising a future where insurance not only protects against environmental risks but actively promotes sustainable practices .
“ Insurance , through its various angles , has a really influential role to play in accelerating the momentum behind transitioning the world to a low carbon economy .”
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