How Insurance Has Become a Well-Spring of Green Innovation


Lubber_100We all know the saying: adversity begets opportunity. Today, the insurance industry is heeding that idea and discovering that hurricanes, among other climate adversities, can create innovation — and revenue.

Stung by record losses from Hurricane Katrina and a wave of other devastating storms that continue now, the insurance industry is recognizing the reality of global climate change. While the specter of more extreme weather events — whether from stronger hurricanes, more damaging wildfires or prolonged droughts — has convinced some insurers to pull the plug on providing coverage in vulnerable areas, many others are seizing the moment by developing new products and services that will reduce losses for both customers and themselves. Examples range from green building design and hurricane-resistant construction to weather derivatives such as drought insurance and wind insurance…