Published On February 22, 2021Insurers are forced to acknowledge the climate crisis and face it head-on because they are losing money as a direct result of climate change.
Insurance companies no longer have the option of doing business as usual. Why? Climate change.
Insurers are forced to acknowledge the climate crisis and face it head-on because they are losing money as a direct result of climate change.
As the occurrences of natural disasters increase every year -- hurricanes, wildfires, flooding, etc. -- so does the cost for insurers.
Unless more sustainable ways of living and doing business are adopted, this trend will continue and it will be insurers who have to pay the price-- literally.
Insurers can’t afford to do business as usual. They need to become active advocates for sustainability.
Here’s how insurers can begin to change the tide of climate change.
A THREE-PART PLAN TO BECOMING AN ADVOCATE FOR SUSTAINABILITY
Becoming an advocate for sustainability is becoming a crucial role for insurers. Here are three steps you can take to start:
Sustainability starts with you. Take a look at your businesses own actions and identify which ones may be causing harm to the environment. This self assessment is important because you may be contributing to climate change in a way you didn’t know before. However, once you know you can change it.
Understand the risks. For many insurers, the risks of climate change are apparent as you are probably well aware of what it is costing you. But in addition to understanding the risks and costs when it comes to clients you cover, it’s also important to understand the risks it may pose to you and your business more directly. For instance, are you storing important documents or information in an area at high risk of flooding? Or at high risk for wildfires? Do you have backups should those documents or information get destroyed?
Use what you’ve learned. Self assessing and understanding your own role in sustainability and climate change puts you in a better position to help others. Use your own knowledge and lessons learned to help clients be more sustainable too.
ACTION STEPS TO TAKE NOW
While self-assessment when it comes to risk and possible contributions to climate change is important, it’s also important to start taking action and contribute in a positive way to the environment now.
So, here’s what you can do now: Commit to zero waste.
You can do this now in several ways:
- safely, securely and responsibly dispose of end-of-life IT assets, data and documents
- securely repurpose and recycle IT assets
- store your insurance information and data in green data centers
Storing and disposing of information is a necessary task no matter what industry you’re in. Making these tasks more environmentally friendly is something you can achieve today.
SUSTAINABILITY IS GOOD FOR THE PLANET AND BUSINESS
Insurance companies need to rethink the way they do business. If they don’t, the risk is they could potentially go out of business.
Creativity is key here as insurers will need to not only adopt more environmentally friendly ways of doing business but also become key advocates for sustainability.