Kathmandu. Insurance companies need strong support to assess how climate scenarios affect their investments.
A global study by Ortech Finance has shown this. One in four insurance investment managers who participated in the study said their understanding of climate impacts was only “average”. While more than 90 percent believe that climate risk and impact investment will increase in importance in the next three years.
Nearly a third believe this will be even more important. Currently, nearly two-thirds of insurance companies invest 4% of their portfolios in sustainable assets such as green and social bonds. Others invest between 3 percent and 5 percent.
“These findings underscore the need for a more explicit approach to climate risk management,” said Hamish Bailey, uk managing director and head of insurance and investment at Ortech Finance. ’
