WTW-气候诉讼风险——有风暴避难所吗？（英）-2023.9.docx

C1imate1itigationriskIsthereshe1terfromthestorm?WtWC1imate1itigationExp1oringtheimpactOfc1imate1itigationriskontheinsurancemarket.SusanDoeringSeniorDirector,HeadofC1imateRiskManagementSo1utionsandG1oba1C1ientAdvocateMiche11eRadc1iffeDirector,C1imateAna1ytics,InsuranceConsu1ting&Techno1ogy.C1imate&InsuranceIawSMEMartin1ockmanC1imate1awFe11owandAssociateResearchScho1arattheSabinCenterforC1imateChange1awInthispaper,1aunchedtocoincidewithNewYorkC1imateWeek2023,wecombinetheexpertiseofWTW,sSusanDoeringandMiche11eRadc1iffe(CorporateRisk&BrokingandInsuranceConsu1ting&Techno1ogyrespective1y),a1ongwithMartin1ockman,C1imate1awFe11owattheSabinCenterforC1imateChange1awandAssociateResearchScho1aratCo1umbia1awSchoo1,tofocusonthere1ative1y1esswe11documentedimpactofc1imate1itigationontheinsurancemarket.Asregu1ators,shareho1ders,andinvestorsincreasing1yfocusontheriskofc1imate1itigation,itiscrucia1for(re)insurerstounderstandtheirpotentia1exposuretoc1imate1itigationacrossdifferent1inesofbusiness.Thepaperaimstohe1pnon-1ife(re)insurersunderstandthescopeofprivatesectorc1imate1itigation,high1ightitspotentia1impactondifferentpo1icy1ines,andpresent(re)insurerswithanoverviewofcoverageconsiderations,riskassessmentmeasures,andareasforfutureinnovation.Wea1soidentifyhowreinsurerscanbeproactiveinaddressingtheg1oba1c1imatetransition.Manycategoriesofc1imate1itigationarisefromcompanies1fai1uretop1anforandprotectagainsttheimpactsofg1oba1c1imatechange.Bybui1dingtoo1s,scenariosandsystemstoidentify,assess,andmitigatec1imate1itigationrisk,(re)insurerscanworkwiththeirc1ientstoidentifyandmitigaterisk,resu1tinginamutua11ybeneficia1outcomefora11parties.Wefocusonahigh-1eve1discussionofrisks,mitigants,andopportunities,anddonotprovideany1ega1advice.Thequestionofwhetheranyspecificcostwi11becoveredunderaparticu1arpo1icywi11dependonanumberoffactors,inc1udingdetai1softheunder1yingc1imate1awsuit,thewordingofanyre1evantpo1icies,andthegoverning1awoftheapp1icab1ejurisdiction.Thehigh-1eve1frameworksdiscussedinthispaperemphasizeonepoint:whi1ec1imate1itigationisoftennove1,itisrare1yunpredictab1e.Withtherequisiteknow1edge,care,anddi1igence,(re)insurerscanworkwiththeirc1ientstoreducerisksacrosstheirportfo1iosandintherea1wor1d.Withtherequisiteknow1edge.(re)insurerscanworkwiththeirc1ientstoreducerisksacrosstheirportfo1iosandintherea1wor1d.IntroductionSincetheUnitedNationsEnvironmentProgrammebegansurveyingg1oba1c1imate1itigationin2017,thevo1umeofc1imate1awsuitswor1dwidehasmorethandoub1ed.AsofDecember31,2023,theUNreportedthatexcessof2,180c1imate1awsuitshadbeenfi1edinmorethan65jurisdictionsacrossthewor1d.1Whi1ethemajorityofc1imate1awsuitstargetgovernments,anincreasingnumberof1awsuitsarebeingbroughtagainstprivatesectorcompaniesunderagrowingvarietyof1ega1theories.2Whi1emuchofthis1itigationisinitsear1ystages,significantdefensecostsarea1readybeingincurredbydefendantentities.3Thisgrowing1itigationriskhascaughttheattentionofinsuranceregu1atorsaroundthewor1d.TheBankofEng1and's2023c1imatestress-testfoundthatinsurersAsofDecember31,2023,theUNreportedthatexcessof2,180c1imate1awsuitshadbeenfi1edinmorethan65jurisdictionsacrosstheworid.1oftenstrugg1etoestimatetheirexposuretoc1imate1itigationrisk.4In2023,Canada'sfedera1insuranceregu1atoremphasizedtheneedforinsurerstoprepareforuc1imate-re1atedc1aimsunder1iabi1itypo1icies,andwarnedthatinsurersandtheirdirectorsandofficersmayface1iabi1ityforneg1ectingc1imate-re1atedrisks.5Whatisc1imate1itigation?Tounderstandthescopeofc1imate1itigationrisk,weneedtofirstansweradeceptive1ycomp1icatedquestion:whatisc1imate1itigation?Thenewsisdominatedbyhigh-profi1e1awsuitsthatbringbroad,society-changingc1aimsaboutgreenhousegas(GHG)emissionsandseektoassignresponsibi1ityforc1imatechangeitse1forho1dfossi1fue1companiesresponsib1efortheharmsassociatedwiththeirproducts.Thesecasesarehuge1yimportant,butjustasimportantforinsurersarethemyriadofotherdisputesdrivenbyc1imatechange:contractsthrownintoconfusionbyunanticipatedweather,c1imate-stressedinfrastructurefai1ingwithca1amitouseffect,directorsandofficerssuedbyshareho1dersforignoringcorporatec1imaterisks.Twoofthesecategoriesmatchtermsusedinc1imatechangepo1icy:umitigationreferstoeffortstos1ow,ha1t,orreversec1imatechangeitse1f,whi1euadaptation1ooksateffortstoadapttothephysica1,societa1,economic,and1ega1changesassociatedwithc1imatechange.7Unsurprising1y,thesepo1icygoa1sareidentifiab1eintheassociatedcategoriesof1itigation.uMitigationc1aims"canariseeitherfromadefendant'shistoricGHGemissionsorattempttopreventfutureGHGemissions."Adaptationc1aims/'arisefromadefendant'sfai1uretop1anfororadapttoc1imatechange."Governanceandregu1atoryc1aims/'arisefromadefendant'sbreachofestab1ished1ega1dutiesre1atedtoc1imatechange.These1ega1dutiescanoriginatefrommanysources.Forthepurposesofthispaper,uc1imateIitigationnreferstodisputesthatarisefrom,orarere1atedto:2.Thephysica1consequencesOfc1imatechange3.1aws,regu1ations,and1ega1dutiesre1at