A Bit of Optimism, For a Change

Talking with people in the wake of the International Insurance Society’s Global Insurance Forum three weeks ago, I’ve heard a note I haven’t heard much lately: optimism.

In the face of the formidable challenges we see in the news daily, there is a sense among speakers and attendees that the industry has risen to the occasion in handling massive claims and now has an opportunity to play a leadership role on even seemingly intractable problems such as climate change.

Josh Landau, president of the IIS, told me that, "the climate side of ESG [environmental, social and governance issues] is an area where the industry can have an outsized impact in terms of what the industry is underwriting or not underwriting and where they’re investing and not investing. The industry also has an opportunity to help shape behaviors that promote social equality and inclusion and equity."

Ken Mungan, chairman of Milliman, who spoke at the GIF, said bluntly: "Humanity will solve the challenge of climate change. It’s just a question of how long it will take and how much pain we will have in the process."

He then offered what I thought was a remarkably clever idea for how the insurance industry can do even more than it is already.