The Posi­ti­ons of Ger­man Insu­rers in 2020: Sustaina­bi­lity

It’s not enough to just be green

As a long-term investor, the insurance sector can provide valuable impetus to investment in climate protection. However, the investments must also be economically sustainable.

The fight against climate change is the challenge of the century. Europe is to be carbon neutral by 2050. The EU Commission's Green Deal is also a growth strategy, as it should be, since climate change and economic prosperity are not mutually exclusive. However, realising both these goals depends on maintaining sufficient flexibility, market orientation and innovativeness as well as observing the requisite stringency of climate protection regulations. Europe will not be able to assume a leading role in the fight against climate change without a growing economy. With investments in the region of EUR 1.4 trillion, direct insurers are among Germany's largest institutional investors. That makes insurers the ideal partner for the energy transition – not least in their own interests, since a planet warming by an average of four degrees would make many risks practically uninsurable. Moreover, they want to limit the impact of potential climate change-related losses on their own investment portfolio. As a long-term investor, the insurance sector can provide valuable impetus to investment in climate protection. However, the investments must also be economically sustainable as the security of customers’ contributions is the first priority. All the climate models show that we must prepare for more extreme weather events. Whether these events will entail more losses depends on how insurers adapt to this new reality.


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