April 7, 2009 - The number of climate-related financial products being offered by insurers worldwide doubled to more than 600 last year, according to a new report by the Ceres investor coalition.

The new products and services identified by the report are offered from 244 insurers, reinsurers, brokers and insurance organizations in 29 countries; 37% of the activities come from U.S. companies. Among the newest products and services are coverage for wind and solar production shortfalls, premium discounts for building efficiency renovations, carbon capture and storage insurance, and coverage for humanitarian emergencies prompted by drought.

Yet despite more creative offerings and a deeper institutionalization of climate-related activities within the insurance sector, the progress by the industry as a whole is still in its infancy, the report notes.

"Insurers are integrating global warming concerns into many products and services, from green home and pay-as-you-drive auto insurance for consumers to renewable energy insurance for companies riding the clean energy wave," says Mindy S. Lubber, president of Ceres. "Still, the scope and breadth of the insurer response fails to match the scale and urgency of the risks - or the opportunities - facing the industry."

"Insurer attention to climate change is hugely important because the insurance industry underlies every aspect of the economy and has the power to transform the global energy system to one that is cleaner and more sustainable," Lubber adds.

The report follows last month's decision by the National Association of Insurance Commissioners to require insurance companies to disclose to regulators and investors the financial risks they face from climate change, as well as actions the companies are taking to respond to those risks. It is the world's first mandatory climate risk disclosure requirement.

Download the report, "From Risk to Opportunity: Insurer Responses to Climate Change," here.