Insurers across all sectors are acknowledging the impacts of climate change on their business, but they are failing to engage in discussions about how to stay ahead of the potential threats, a new preparedness study says.

"Every segment of the insurance industry faces climate risks, yet the industry's response has been highly uneven," says Mindy Lubber, president of Ceres, which conducted the study. "The implications of this are profound because the insurance sector is a key driver of the economy. If climate change undermines the future availability of insurance products and risk management services in major markets throughout the US, it threatens the economy and taxpayers as well."

Ceres conducted the study on 184 insurance-company disclosures to the National Association of Insurance Commissioners' (NAIC) climate-risk survey. The results showed that out of a possible 50-points ranking how the industry reveals its plans to deal with the organizational and business risks caused by climate change, the average score was 7.3. Ceres says that included in the 50-point scoring system are a company's awareness of increased severe weather on business continuity, pricing, and customer interactions; a plan of how company management deals with these risks; the innovation of products related to climate change; and even efforts to reduce greenhouse gas emissions.

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