Looking ahead to COP28

More than 70,000 delegates are expected to descend on Dubai next week for COP28, the latest annual round of climate talks, with representatives from the (re)insurance sector set to be among them.

This year’s event will aim to build on progress from recent COPs, with the launch of the Global Shield initiative at COP27 providing an umbrella for climate risk finance and protection activities.

Recent rounds of climate talks have seen greater recognition – both by governments and non-governmental bodies – of the role insurance can play in helping provide solutions for some of the critical issues at stake. The hope among industry representatives will be that this continues at COP28.

The need to shift towards pre-arranged financing rather than post-disaster aid will also be high on the agenda at this year’s talks as part of a drive to transform the way crisis events are financed.

There remain challenges around the use of insurance within adaptation structures, particularly around the affordability of premiums. For many sovereign risk schemes, this remains a difficult area, with political challenges around deploying funds on insurance premiums ahead of other pressing needs.

Addressing these challenges will be a key area of discussion during COP28. Over the two weeks of talks in Dubai, much of the industry’s focus will be on the role it can play in helping build societal resilience.

There will also likely be discussions around fast-tracking the energy transition – another area where the industry can play a critical enabling role through the provision of new products that help de-risk projects focused on new and emerging technologies.

ESG Insurer will provide in-depth coverage of this year’s climate talks when they begin on 30 November…