Due to the loss of nature, companies are exposed to a number of risks. It is vital for companies to understand how their assets and operations impact nature and their dependence on it.
Marsh McLennan’s Rooted in Resilience: Innovations in nature insurance for business outlines how innovative risk transfer solutions can help businesses manage nature-related risks and accelerate their transition to nature-positive operating models.
To protect balance sheets from activities that harm nature, businesses need robust enterprise risk management strategies, including pollution prevention and avoidance. Risk transfer solutions, such as environmental liability and business interruption cover, are emerging as vital components in this process.
New insurance solutions are emerging in response to growing nature loss risks. Technological advancements are allowing re/insurers to extend coverage for a more extensive range of nature-related risks. These innovative solutions acknowledge the interdependencies between nature and climate change, particularly the essential carbon mitigation services provided by nature.
As nature loss moves up the corporate agenda, risk transfer can play an important role in reducing businesses’ impact on nature and building corporate resilience. New models of collaboration and investments in analytics and risk managements systems are needed to foster more innovation and bring new insurance solutions to scale.
This new report builds on Marsh McLennan’s Embracing Nature: How Businesses Can Engage with New Environmental Imperatives, which outlines how nature loss is driving a range of direct and indirect risks for companies, impacting their balance sheets, operating models, value chains, and stakeholder relationships.