Energy efficiency Options for Insurance Loss Prevention

This report argues that the insurance industry should support efforts to identify, improve and implement "noregrets"
energy options that would both reduce near-term business risks caused by insured losses while making
a considerable contribution to long-term reductions in greenhouse-gas emissions that also threaten their bottom
line. The short-term risk-reducing benefits would have distinct value to insurance companies and their customers
irrespective of the timing or extent of future damages related to global climate change.
Our central recommendation is that the international insurance industry initiate a systematic activity to (a) identify
technologies that contribute both to traditional loss-prevention and to reducing greenhouse-gas emissions,
(b) promote the dissemination of information and the utilization of such technologies in the cases where they
have proven to contribute to loss prevention and are commercially available, (c) "lead by example" by implementing
in-house energy management programs in their own building stock, and (d) support research, development,
and commercialization where promising technologies are not yet available in the marketplace. Once the
loss-prevention benefits are sufficiently demonstrated, insurers can promote the use of the corresponding technologies
and strategies by introducing risk-adjusted insurance premium schemes.