CISL publishes framework on nature-related risk management for insurers

Researchers from the Cambridge Institute for Sustainability Leadership (CISL) have published a new framework to assist insurance companies in identifying nature-related risks. A CISL report cites recent survey data showing that 50% of insurers and reinsurers agree that nature-related risks affect underwriting. However, CISL argues that their ability to analyse the risk is methodologically constrained. The framework seeks to understand the dynamics of risk by focusing on four key factors: risk types, the range of causes, impact on firms and the consequent financial risk. The report says that the framework “was co-created by banks, asset managers, CISL’s Centre for Sustainable Finance and academics from the University of Cambridge conservation cluster”. It builds on the review of the economics of biodiversity undertaken by Professor Sir Partha Dasgupta for the UK Treasury in 2021.