Insuring with Nature: Premium Rewards for Implemented Risk Reduction

The webinar, co-hosted by Risk KAN will explore how nature protection and ecosystem restoration can generate measurable, financeable disaster risk reduction—and how verified risk reduction can translate into greeniums, such as reduced insurance premiums or other pricing advantages. When well designed, these mechanisms can unlock additional funding for implementing and maintaining Nature-based Solutions (NbS).

The new NATURANCE CEN Workshop Agreement will also be introduced, an open, community-driven pre-standard that proposes shared design principles and metrics for assessing risk reduction and co-benefits. It aims to support comparable and credible practices across procurers, developers, insurers, investors, and communities

JoAnne Linnerooth-Bayer from Equity and Justice Research Group (EQU) at IIASA will provide an overview of activities insurers can undertake to support Nature-based Solutions with a focus on insurance discounts or greeniums for disaster risk reduction (DRR). Taking account of experience across many insurable risks, she will highlight a recent and novel example of an insurance discount for a Nature-based Solution, namely forest treatment to mitigate wildfire risk in California. Notably, this NbS greenium was made possible by a community insurance arrangement and state regulation requiring insurance discounts for DRR. The talk concludes with suggested reforms in the European Union to unlock additional funding for Nature-based Solutions.

Speakers:

• JoAnne Linnerooth-Bayer (IIASA)
• Jaroslav Mysiak (CMCC)

Registration is open until 16 December.

Registration