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Climate change, insurance, and the buildings sector: Technological synergisms between adaptation and mitigation

Abstract

Examining the intersection of risk analysis and sustainable energy strategies reveals numerous examples of energy efficient and renewable energy technologies that offer insurance loss-prevention benefits. The growing threat of climate change provides an added motivation for the risk community to better understand this area of opportunity. While analyses of climate change mitigation typically focus on the emissions-reduction characteristics of sustainable energy technologies, less often recognized are a host of synergistic ways in which these technologies also offer adaptation benefits, e.g. making buildings more resilient to natural disasters. While there is already some relevant activity, there remain various barriers to significantly expanding these efforts. Achieving successful integration of sustainable energy considerations with risk-management objectives requires a more proactive orientation, and coordination among diverse actors and industry groups.

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