How the insurance industry is tackling climate risk

In recent episodes of the ESG Insider podcast, we've explored how different sectors are approaching climate change. In today's bonus episode, we're focusing on the insurance industry in an interview with Liz Henderson.

Liz leads Climate Risk Advisory for Aon, a global insurance and reinsurance brokerage firm. In the episode she talks about her key takeaways from COP29, the UN climate conference that recently took place in Baku, Azerbaijan.

This event was widely known as the "finance COP," and Liz says that insurance plays a critical role alongside private finance. "You cannot have bankable high-value investment capital without risk capital alongside it to de-risk those investments," she tells us.

Liz also talks about the role of data and the insurance industry's unique perspective on risk, thanks to its long history of modeling the impacts of events like hurricanes, floods and wildfires. She said this allows insurers to help companies measure and manage their climate risks.

Listen to our previous coverage of COP29:

How the private sector showed up at COP29: https://www.spglobal.com/esg/podcasts/how-the-private-sector-showed-up-at-cop29

After COP29, what's next for carbon markets: https://www.spglobal.com/esg/podcasts/after-cop29-what-s-next-for-carbon-markets

UN official says credibility of climate COPs at stake heading into 2025: https://www.spglobal.com/esg/podcasts/un-official-says-credibility-of-climate-cops-at-stake-heading-into-2025

This piece was published by S&P Global Sustainable1, a part of S&P Global.

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