What does it take to keep our world insurable?

The insurance sector is intimately familiar with risk, yet the nature of risk is constantly evolving. From everyday occurrences like car accidents to global events like the COVID-19 pandemic, we are all exposed to various risks. The pandemic underscored the impact of systemic risks that affect everyone, revealing a harsh truth: some risks are now so great that they exceed the capacity of insurers.

The climate crisis exemplifies challenges. A newly published Allianz Research report indicates that the frequency of extreme weather events is raising concerns about insurance's availability and affordability. More than half of those surveyed by the Geneva Association, for example, worry about future insurance accessibility, fearing that it may become prohibitively expensive or even unavailable.

This trend toward higher-risk scenarios, as highlighted by Allianz researchers, poses a significant question: Are we moving toward an uninsurable future? Frequent events such as heatwaves and floods, along with their unpredictable impacts, strain traditional insurance models.

However, Allianz researchers believe compromises can be found. They analyzed 9 crucial life aspects to outline necessary tradeoffs and propose solutions.

For individuals, changes are needed in consumption, lifestyle, living spaces, and savings. These include: 

  1. Consumption: Eliminating the green premium for climate-friendly products through increased carbon pricing.
  2. Lifestyle: Influencing behavior through pricing, nudges, and providing adequate infrastructure like public transport and climate-impact information.
  3. Living spaces: Setting risk-appropriate prices to encourage risk prevention and adaptation.
  4. Savings: Promoting long-term savings through tax breaks and subsidies.


Businesses face similar challenges and need public support and incentives in various areas:

  1. Borrowing: Reducing investment uncertainties through tools like contracts of difference.
  2. Green investments: Making eco-friendly investments profitable and scalable through subsidies.
  3. Employees: Addressing climate-related challenges through innovative unemployment schemes.
  4. Supply chains: Transitioning to sustainable and secure supply chains through holistic risk management.
  5. Materials: Advancing a true circular economy by introducing quotas to offset cost concerns.

While transitioning to a decarbonized economy involves challenges, it ultimately promises a more prosperous future. Exigent action is vital to avoid a climate policy backlash and to bolster our collective ability to address climate change effectively.

Discover how these 9 "moments of life" can shape a sustainable future here.

The Allianz Group is one of the world's leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 746 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.
* Including non-consolidated entities with Allianz customers.
** As of March 31, 2024.
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements:
Allianz Trade & Inclusive Brains join forces to foster the inclusion of people with disabilities

Allianz Trade, the world’s leading trade credit insurer and Inclusive Brains, a French start-up developing a new generation of neural interfaces powered by generative Artificial Intelligence (AI), have partnered to develop Prometheus, a new kind of brain-machine interface that transforms diverse neurophysiological data (brainwaves, heart activity, facial expressions, eye-movements) into mental commands.

Survey Reveals Loss of Trust but High Expectations for US-German Partnership

“The State of Trust and the US-German Partnership: A Transatlantic Survey” conducted in March 2024 finds Americans and Germans are less confident in the partnership and its future than they were two years ago. Trade, common interests, and military alliance remain bedrocks of transatlantic partnership’s foundation.

How savers fared: strategies and outcomes across the Euro zone

A new report from Allianz Research compares the saving strategies of households across countries and generations in the euro zone to see how savers fared. European savers have emerged from the crises of the last two decades in surprisingly good shape, almost doubling their financial assets.