Key Impact Points:
- First-of-its-kind framework: UNEP’s PSI Working Group for Nature has launched Rooted in Risk, the first tailored guidance to help insurers assess nature-related risks in underwriting portfolios.
- Bridges a critical gap: The report addresses the lack of dedicated tools for evaluating how nature-related issues affect both non-life and life & health insurance business models.
- Series to continue in 2025: A follow-up guide, Breaking Ground, is scheduled for release later this year to further support nature-positive insurance transformation.
Groundbreaking Guidance for the Insurance Sector
As part of London Climate Action Week, the UNEP Principles for Sustainable Insurance (PSI) Working Group for Nature unveiled a foundational report titled Rooted in Risk: Framing nature-related assessments for insurers. This marks the first release in a new series aimed at equipping insurers with the tools to address nature-related risks and opportunities within their underwriting portfolios.
Closing the Nature Guidance Gap in Insurance
While the financial sector has made progress in assessing nature-related risks, insurance-specific underwriting guidance has remained limited. Most existing frameworks focus on investment and lending. As the report explains, this lack of tailored methods has made it difficult for insurers to understand how their underwriting activities contribute to or are impacted by nature-related issues.
“Rooted in Risk” provides practical pathways for insurers to assess how nature intersects with their business models across both non-life and life & health portfolios.
A Technical Roadmap for Action
The report builds on the PSI Working Group’s 2023 publication Insuring a resilient nature-positive future, offering insurers a technical foundation to:
- Identify areas in their value chain exposed to nature-related risks
- Understand how these risks manifest across business lines
- Develop appropriate and proportionate responses
It is designed for companies at all levels of expertise and also serves as a resource for external stakeholders supporting insurance firms on nature-related assessments.
What’s Next
Later this year, the PSI Working Group will release Breaking Ground, the second installment in the “Nature Uncovered for Insurers” series, further advancing efforts to integrate nature considerations into the insurance sector.
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