Original publish date: October 21, 2020

Inside this episode:

• Simon Ainsworth and James Eck of the Insurance team discuss the latest developments in global insurers’ efforts to assess and manage climate risk. ​​​​​(begins at 2:27)
• ​​Stefan Kahandaliyanage of the Insurance team lays out the risks US health insurers face from a policy drive toward a public insurance option. (begins at 10:04)

Related content:

• Health Insurance – US: Policy drive toward transformation of health insurance poses risks to profitability - Proposals to create a public health insurance option would likely reduce earnings at our rated companies to varying degrees, with more expansive options having a larger impact.
• P&C Insurance and Reinsurance – Global: Climate change risks outweigh opportunities for P&C (re)insurers - P&C (re)insurers have significant exposure to the economic consequences of climate change, including risks arising from catastrophe exposures, claims on liability policies, and investment
• Insurance – Europe: Insurers increasingly engaged as ESG risks and opportunities come into focus - European insurers see environmental, social and governance (ESG) issues as an area of strategic focus, and expect them to have a moderately adverse impact on underwriting risk.
• Financial Institutions – Europe: BoE climate change stress tests will reinforce risk management for banks and insurers - Climate change stress tests are credit positive as they will help banks and insurers understand the consequences of climate change for their business, and support their risk management.
• Allianz, AXA, Swiss Re, Munich Re, Zurich: Retreat from coal reduces liability and stranded asset risk, a credit positive  - Major European (re)insurers are limiting their investment and underwriting exposure to coal. This protects them against climate change liability risk, and the risk of asset stranding.
• Moody’s Banking Series - ​​The Series digital program is free and offers exclusive interviews, thematic panel discussions and regional deep dives.​