Insuring Nature's Survival: The Role of Insurance in Meeting the Financial Need to Preserve Biodiversity

Organisation:
Disaster Risk Financing and Insurance Program, World Bank Group (WBG)
Cover Photo

Biodiversity loss will be an increasingly important source of risk and opportunity for the insurance sector. The significant degradation of ecosystems has the potential to materially impact global finance, economies and societies alike. Understanding the physical and transition risks associated with biodiversity loss and working to mitigate the damage to biodiversity will be a key aspect of meeting the targets set by the Paris Agreement.

This paper explores how and to what extent insurance can play a role meeting the increasing financial needs to protect biodiversity. It outlines how the insurance sector, as underwriters, may impact and protect against biodiversity risks, leveraging approaches to climate change and catastrophe risk to highlight key opportunities and challenges that exist for insurance-based solutions for biodiversity.

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