As climate change, the increase in natural catastrophe events and the COVID-19 pandemic alter the contemporary risk landscape, there is now an opportunity for governments to partner with the (re)insurance industry and put its expertise to work.
Many governments are focusing on a “green recovery” and, as part of their stimulus packages, are investing in green infrastructure and clean energy projects. The size of economic stimulus packages and transference programs during the COVID-19 pandemic has also dispelled the myth that governments do not have the financial capability to support the transition. The pandemic has also forced substantial changes in the way we live. Lower consumption levels and demand for oil may persist, providing solid ground for further decarbonization.
Read more about the “Creative Recovery” (page 68) in the 2021 Global Risks Report, from the World Economic Forum with support from Marsh & McLennan.