Template-Type: ReDIF-Article 1.0

Author-Name: Anett Pandurics
Author-Workplace-Name: Chair and CEO of Posta Biztosító, and Chair of the Association of Hungarian
Insurance Companies (MABISZ)
Author-Email: pandurics.anett@mpb.hu

Author-Name: Péter Szalai
Author-Workplace-Name: Managing Director of PEND Consulting
Author-Email: p.szalai@pend.hu



Title: The Impact of Climate Change on the
Insurance Sector

Abstract: One of the key tasks and core competencies of the insurance sector is to assess
natural risks on a continuous basis and to manage the potential impacts of those
risks. It is therefore not surprising that from the beginning, the insurance sector
has been an active participant in modelling the impact of climate change and in
identifying possible solutions. Before coming to our analysis of the relationship
between the insurance sector and climate change, it is essential to explain key
terms and basic possible impacts. For that reason, we start our paper with a
brief summary of the causes of climate change and the most important groups
of consequences, and a description of the European milestones on the road to
the low-carbon economy. The impact of climate change on the insurance sector
is explained through a German and an English example, in each case presenting
and construing the assertions of a relevant study. In addition to an explanation of
the differences in the approaches which are characteristic of each country, we also
considered it important to outline the most important institutional viewpoints: in the
German case, we mostly found examples for the insurance sector reacting in search
of opportunities, while the English study is suitable to illustrate an approach that
is more supervisory and risk-oriented in nature. To break new ground, we conclude
our paper by addressing the likely impact of climate change on the Hungarian
insurance sector.

Classification-JEL: G22, Q28, Q54
Keywords: sustainable insurance, climate hazard, global warming, NCCS-2, lowcarbon
economy
Pages: 92–118
Volume: 16
Issue: 1
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/anett-pandurics-peter-szalai.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:1:p:92-118