As climate impacts increase, the insurance industry will need to shift its approach to consider climate damages and engage with communities.
Mainstream climate risk modeling and pricing into insurance products for agriculture, infrastructure, housing, and business continuity.
Expand parametric insurance solutions and climate-indexed products to cover drought, floods, heatwaves, and fires.
Strengthen public-private insurance mechanisms to protect vulnerable populations.
Mobilize insurance-linked finance to de-risk climate investments and support resilience.
No Progress
Brazil became the world’s first insurance market to commit to climate-risk transparency, aligning with the Task Force on Climate-related Financial Disclosures principles and publicly endorsed by insurers and the Superintendence of Private Insurance in 2018.
The agricultural insurance sector in Brazil has expanded through public-private co-financing, such as the Programa de Subvenção ao Prêmio do Seguro Rural, covering drought and flood risks—but remains concentrated in certain regions and crops.
Reinsurers and insurers, including Swiss Re, Mapfre, and IRB Brasil Resseguros, have begun incorporating climate catastrophe modeling, using geospatial data and historical loss trends to price risk differently.
The Central Bank of Brazil and the Superintendence of Private Insurance are integrating climate risk into regulatory agendas. The Central Bank’s General Guidelines on Socio-Environmental and Climate Risk (GRSAC) framework requires financial institutions to disclose climate exposures, while Superintendence of Private Insurance is piloting environmental, social, and governance reporting for insurers.
Cooperation is required between these actors and audiences to drive progress foward in Shifting Insurance Models.
Showcasing the key reform milestones for Shifting Insurance Models that have been addressed at global events.
Brazil
Integrate climate insurance into national adaptation policy frameworks to align risk transfer with resilience planning and public financial protection.
Integrate climate criteria into Brazil’s fiscal rule frameworks and legal interpretations of the Fiscal Responsibility Law (LRF), making climate objectives binding in fiscal planning,
New York, US
Improve affordability and accessibility of insurance for underserved producers in the North and Northeast via public-private partnerships and premium support.
Institutionalize the national environmental accounts (CEA), embedding them into Brazil’s fiscal and financial governance frameworks
Washington DC, US
Deepen long-tenor BRL markets to facilitate 15–20 year financing for renewables, and adaptation projects without exposure to foreign exchange risk.
Develop granular, localized climate and hydrological data to support actuarial modeling, enhance product design, and reduce pricing volatility.
Publications and educational material to deepen understanding of Shifting Insurance Models.
New regulation on mandatory disclosure of social, environmental, and climate-related risks by financial institutions.
Principles of Sustainable Insurance, a global framework for insurers to integrate ESG and climate risk into decision-making.
Article highlighting Brazil as the first insurance market to commit to full climate risk transparency.
Study on the challenges of rural insurance in Brazil under climate change, with a focus on soybean production.
No Progress
Moderate Progress
No Progress
Moderate Progress
Moderate Progress
Moderate Progress