WHAT CANNOT BE INSURED CANNOT BE INVESTED IN: Redesigning Insurance in an Era of Increasing Risk

This plenary will examine how insurance is the cornerstone of economic stability and the foundation of the capital stack, essential to mobilizing finance and ensuring business continuity and growth. As climate and nature-related disasters become structural rather than rare, the threat of an uninsurable world is rising. Over the past five years, natural catastrophe losses have exceeded $100 billion annually, more than double the average from two decades ago, pushing premiums higher and making certain physical assets and geographies increasingly difficult to insure. By 2030, premiums for physical climate risks are projected to rise by 50%, reaching up to $250 billion annually. Without a strategic rethinking of insurance solutions, economic activity and investments are at risk of stalling, threatening livelihoods, supply chains and vulnerable communities worldwide.

High-level experts will showcase how insurance is already playing a key role in safeguarding economic resilience and catalyzing the net-zero transition. Real-world solutions from the public and private sectors will showcase how innovative insurance solutions and partnerships are de-risking and incentivizing investments in climate-adaptation such as low-carbon infrastructure and climate-vulnerable agriculture supply chains. As an example, $19tn is already committed to climate finance through 2030, with over $10tn of that requiring adequate insurance coverage.