MAPFRE is joining the United Nations Environment Program Finance Initiative, along with 15 other insurers, to assess the impact of climate change and to incorporate the recommendations of the Task Force on Climate-related Financial Disclosures in the insurance industry, the Company announced.
This working group is developing a series of tools to assess the risks, to provide relevant information to investors about the effects of this global phenomenon, and to help in the transition toward low-carbon climate-resistant societies and economies.
“As a global insurance company, MAPFRE is participating in the commitment to contribute to defining a standard of technical and financial action for the entire sector that will help the insurance industry to manage the risks and opportunities of the transition toward a low-carbon economy, and to reduce the impact of climate change for the whole of society,” said Fernando Mata, MAPFRE’s CFO.
Global warming is generating adverse trends such as a rise in sea level, desertification, and the increase in both frequency and intensity of meteorological phenomena such as flooding, hurricanes, droughts, and forest fires, which require an effort on the part of insurers to balance the protection they offer their clients and the economic impact of providing this protection, MAPFRE executives said.
“For generations, the insurance industry has served as an early warning system and a risk manager for society, since it analyzes, reduces and accepts risks. The risk of climate change is intensifying,” said Erik Solheim, Head of the UN Environment Program.
“This is why we are working with the main insurers. We want to achieve a full understanding of all the repercussions,” he added.