Insurers have a “superpower” essential for the energy transition, helping to limit risks involved in new technologies and strengthen climate modeling, according to Rakhi Kumar, head of the Liberty Mutual Climate Transition Center.
“Insurers are risk experts. We are very good at risk identification, risk mitigation and risk transfer,” she told BloombergNEF in an interview. “That is the superpower of insurers, and there's a lot of risk in technology as we are transitioning to a low carbon economy.”
Risk assessments vary substantially, however, depending on the climate modeling and data used. Kumar, who is also the senior vice president of sustainability solutions and business integration at the company, makes the case for “a cross-sector, public-private conversation of what the future of climate data and models looks like. Because it’s in everyone’s best interest that we get it right.”
Read the full conversation with BloombergNEF in this October 2024 article here.
