Specialist climate change investment and advisory firm Pollination Group and Howden, leading global insurer, have partnered to produce a joint report: “Through the Wilderness” – a role of insurance in unlocking nature finance.

“We are in a decisive decade for the future of our climate and nature. Delivering on global nature positive and net zero ambitions will require significant acceleration of private sector capital flows towards activities that benefit nature,” states the foreword to the Report.

The report examines the current state of nature finance and how insurance can help unlock capital to power net zero. Urgent action is needed to close the financing gap for nature and catalyse the nature-positive transition of the global economy. The insurance sector is poised to help break down barriers to investment and drive a step change in capital flow for nature.

Key highlights from the report include:
 

• The four core roles insurance can play to enable investment in nature including (i) risk transfer to mobilise capital; (ii) protecting natural assets; (iii) enabling trading in environmental markets; and (iv) governance.
• Key trends and opportunities for insurance including the global food system with a financing gap of USD 200 billion to USD 450 billion remains to support widespread adoption of regenerative practices and the carbon credit insurance market which is set to grow by USD 10-USD 30bn by 2050.
• Why integrating nature risks into traditional underwriting approaches, including political risk and forestry insurance, provide innovative solutions to support nature financing.
  • Case study: The first insurance policy for a natural asset, the Mesoamerican Reef Insurance Programme, has inspired other geographies to explore similar solutions for reef and mangroves – recognising the critical resilience benefits provided by these habitat
  • The first U.S. coral reef insurance policy was purchased in Hawaii in 2022. TNC and WTW have collaborated to develop a new policy which:
    • Adds 314,976 square miles to the coverage area, capturing more storm events;
    • Provides a maximum payout of USD 2 million over an annual policy period and USD 1 million per storm; and
    • Doubled the minimum payout to USD 200,000.

• Next steps and recommendations, including risk transfer, protecting natural assets, enabling trade in environmental markets and investigation where insurance incentivises nature and biodiversity loss.

Get a copy of the report here.

About Pollination

Pollination is a specialist climate and nature solutions firm, dedicated to accelerating the shift to a net zero, nature positive and resilient future. Launched in 2019, the organization has a presence in 13 countries across The Americas, EMEA and Asia Pacific. It works with financial institutions, companies and governments to implement ambitious transition strategies. Its team are world leaders in diverse disciplines, including finance, investment, corporate governance and strategy, technology, law and policy. This diversity enables Pollination to connect dots to unlock new sustainable solutions. For more information, please visit: www.pollinationgroup.com

About Howden

Howden is a leading global insurance group with employee ownership at its heart. Founded in 1994, it provides insurance broking, reinsurance broking and underwriting services and solutions to clients ranging from individuals to the largest multinational companies. The group operates in 55 countries across Europe, Africa, Asia, the Middle East, Latin America, the USA, Australia and New Zealand, employing 18,000 people and handling USD 38bn of premium on behalf of clients. For more information, please visit: www.howdengroup.co