Ping An Publishes Groundbreaking Report on Climate Change and Disaster Management
Ping An Insurance (Group) Company of China, Ltd. (referred to as “Ping An” or “the Group”, listed on HKEX: 2318 / 82318 and SSE: 601318) has unveiled an important report entitled “Climate Change Adaptation and Disaster Risk Management: Current Practices and Future Perspectives for the Insurance Sector.” This report is the result of a collaborative effort with Southern University of Science and Technology, Tsinghua University, Risk Lighthouse International Pt Ltd, and Ernst & Young (China) Enterprise Consulting Co.
Addressing Industry Challenges
The insurance sector faces increasing challenges due to climate change, including heightened disaster risks and substantial compensation liabilities. The report explores the impact of climate change on the insurance industry, detailing both Chinese and international responses. It also presents innovative strategies to enhance climate risk resilience and offers policy recommendations to address climate change effectively.
Ping An’s Commitment to Sustainability
Richard Sheng, Ping An’s Board Secretary and Brand Director, stated, “With the rise in extreme weather events globally, there is an urgent need for the insurance industry to adapt. This report aims to guide the industry in responding to climate risks, enhancing insurance systems, and advancing green development. Ping An remains committed to developing technology finance, green finance, inclusive finance, pension finance, and digital finance to support sustainable economic and social progress.”
Progress in Green Finance
Ping An has demonstrated substantial progress in green finance. By the end of 2023:
- Green insurance premium income reached RMB 37.3 billion, marking a 49% increase year-on-year.
- Green loan balance amounted to RMB 146.3 billion, up by 25.7% year-on-year.
- Green investment of insurance funds totalled RMB 128.6 billion, a 19% year-on-year increase. All investments meet ESG integration requirements.
Future Directions
Ping An is dedicated to advancing sustainable development and enhancing society’s ability to manage climate risks. The company will continue to develop green insurance products and collaborate with various stakeholders, including the government and scientific research institutions, to strengthen climate change strategies and support sustainable development.
The report also highlights emerging trends and technological advancements that are shaping the future of climate risk management in the insurance sector. Among the key innovations discussed are the integration of artificial intelligence for predictive analytics and the use of blockchain technology for enhancing transparency and efficiency in claim processing. These advancements are poised to revolutionise how insurance companies assess and mitigate risks associated with climate change. The report emphasizes the need for continued research and development in these areas to stay ahead of evolving climate threats and to foster a more resilient and adaptive insurance industry. By adopting these cutting-edge technologies, insurance companies can better predict and respond to extreme weather events, ultimately providing more robust protection for communities and businesses worldwide.
