Insuring a Sustainable Future: How Property and Casualty Insurers are Adapting to Net Zero

Rahul Deb Chakladar

Abstract: The global transition to net zero emissions presents a significant challenge and opportunity for the insurance industry. This paper explores how property and casualty (PC) insurers are adapting their business models to the realities of a changing climate. It examines the key challenges, including increased risk of catastrophic losses, changing regulatory landscapes, and evolving customer demands. The paper then analyzes a range of adaptation strategies, such as risk modeling enhancements, product innovation, proactive risk mitigation services, and sustainable investment practices. Through a proactive approach to climate risk management, these insurers can not only ensure their own long - term sustainability but also play a crucial role in enabling a smoother transition towards a low - carbon economy. PC insurers that successfully adapt to the net - zero landscape will reap significant benefits, including enhanced resilience, improved risk selection, and a competitive advantage in a sustainable marketplace.

Keywords: Net Zero Emissions, Climate Risk Management, Sustainable Insurance Products, Property and Casualty Insurance, Climate Change Adaptation Risk Modeling Enhancements, Regulatory Landscape Customer Demands for Sustainability, Sustainable Investment Practices Proactive Risk Mitigation