Insurers must collaborate with public policy makers to mitigate climate risk

Insurers must continue to work with public policy makers to allow insurance companies to deliver more climate risk mitigation measures at an accelerated pace, according to a Zurich white paper. 
Zurich’s report, The Climate Risk Challenge: The role of insurance in pricing climate-related risks, lists a number of important concepts to be incorporated into any public policy response related to climate change. They are:
•    Terms and conditions of the policy response must continue to allow insurers to use their core skills to send risk-based price signals and manage risk.
•    Climate policy must include provisions that allow for the quick and efficient resolution of situations involving a conflict of laws both within and between sovereign jurisdictions.
•    Climate policy must enable markets to function properly. To do so, public policy makers must properly assign property rights. Where they cannot be assigned, because the property in question is a public good, governments must align incentives to reflect the goals of climate policy.
•    Climate policy must recognize the regional nature of climate change and the intersection of energy, water, and carbon risk management strategies.