A new briefing from InfluenceMap reveals that several insurance industry groups—representing some of the world’s largest property & casualty (P&C) and life insurers—have mobilized to slow down efforts by global standard setters to tackle climate-related insurance risk, raising questions about future security for homeowners and the broader financial system. The latest data shows that insured losses from natural disasters once again exceeded USD 100bn in 2025 (1).
In responses to standard-setter consultations, industry groups repeatedly questioned the climate risk implications for the insurance sector, asserted that insurers can sufficiently manage climate risks, and argued that natural catastrophe events are not frequent enough to require additional guidance or regulation. The research covers eight groups, including the American Property Casualty Insurance Association (APCIA), the General Insurance Association of Japan (GIAJ), and Insurance Europe. Their members include the world’s largest insurance companies, including AXA, Allianz, and Liberty Mutual.
The analysis examines responses to four consultations that the International Association of Insurance Supervisors (IAIS), the global standard setter for the insurance industry, held on climate risk between 2023 and 2024. The responses reveal how a number of industry associations attempted to downplay the risk that climate change poses to the insurance sector while opposing additional supervisory action. These positions appear misaligned with those of some of the associations’ insurance company members, which have acknowledged the impact of the climate crisis both explicitly and in their underwriting decisions.
In addition to claims that “insurers have proven they are capable and up to the task of managing this climate risk” (Global Federation of Insurance Associations (GFIA), 2024), industry groups pushed back on specific policy recommendations from the IAIS, including around climate scenario analysis, greenwashing regulation for insurance products, and supervision of insurers’ investment decision-making.
Relatedly, the groups asserted that it is not within the mandate of insurance supervisors to “promote the transformation of a climate-neutral environment” and instead advocated for increased government action on disaster prevention and mitigation, arguing that this effort falls within the remit of "real economy" policymakers (GFIA, 2024). Despite these arguments, InfluenceMap did not find evidence of these industry groups advocating for ambitious government policy to support the climate transition.
Industry groups’ positioning in these responses appears to be misaligned with the positions of some of their members, many of which have recognized this risk both explicitly and in their pricing and coverage decisions. In the US, home insurance costs increased by an average of 24% from 2021 to 2024 and rose to an all-time high in the first half of 2025 (2). A recent statement from Allianz board member Günther Thallinger characterized the climate crisis as on track to destroy capitalism and warned that it will not be a “one-off market adjustment.” (3). Other members appear supportive of financial regulators promoting the climate transition, including AXA, which called for “Governments and regulators (including insurance and financial regulators) ... strengthening and evolving policies to achieve the emissions reductions necessary to meet their +1.5°C pledges.” (4).
Méabh Hartney, Analyst at InfluenceMap said:
Scientific attribution tells us that natural disasters are becoming more severe and more frequent as a result of climate change. Here, groups representing an industry built around risk management are found to be explicitly downplaying climate risks to the insurance system, contradicting some of their own members, which have recognized these risks both explicitly and in their coverage decisions. These misalignments urgently need to be addressed so that regulators and standard setters have a clear view of the climate-related risks faced by the insurance sector and what’s needed to address them.
Click here to read the full Briefing
Kitty Hatchley, Media Manager, InfluenceMap (London)
Email: kitty.hatchley {@} influencemap.org
Notes to editors:
(1) https://www.munichre.com/en/company/media-relations/media-information-and-corporate-news/media-information/2026/natural-disaster-figures-2025.html?utm_source=substack&utm_medium=email
(2) https://www.google.com/url?q=https://consumerfed.org/wp-content/uploads/2025/03OverburdenedReport.pdf&sa=D&source=docs&ust=1770132467406010&usg=AOvVaw0G-nD_EeoTOLDRaV62OL3K
(3) https://www.theguardian.com/environment/2025/apr/03/climate-crisis-on-track-to-destroy-capitalism-warns-allianz-insurer
(4) https://influencemap.org/evidence/393a671c6dc08ef22c99b6380da51044
