Of course it does!
Insurance is already playing a vital role in the energy transition, especially when it comes to accepting and mitigating risks for new low-carbon technologies. For example, we already ensure 20 operating offshore wind-parks and the construction of 35 more through our industrial insurance arm, Allianz Global Corporate & Specialty (AGCS).
On the flipside, the effect of stopping to accept certain (e.g. coal-related) risks is not so clear cut. Insurance is commonly offered in pools, meaning different companies share a given risk. Should one insurer step away from a particular risk, a competitor would usually fill the gap. The impacts on revenues aside -by simply walking away from existing risks (such as coal plants in operation), an insurance company pays no service neither to its clients, nor to society. Further, we think it is more productive if we remain in dialogue with our clients as a strategic and technical partner and support them in their energy transition.
We believe that the insurance industry needs to work towards a common understanding on how to deal with carbon-related risks.