The insurance industry plays a key role in de-risking infrastructure and mobilising long-term private capital to climate risk-resilient projects, agreed a group of decision makers and international experts summoned in
Anna Maria D'Hulster, Secretary General of
Forum participants stressed the importance of public policy and regulation at all levels of the government to make climate resilience a pre-requisite for infrastructure projects' life cycle. Governments play a critical role in implementing risk reduction measures such as land-zoning to avoid building in high-risk zones, upgrading and enforcing building standards, and recovering and maintaining natural infrastructure such as wetlands. Emerging technologies are leading to 'smart green' infrastructure systems with changing risk profiles which must be assessed and allocated between governments and the private sector. In addition, institutional investors should engage with non-life insurers to reduce the risks associated with the projects, thus improving risk-adjusted returns and making infrastructure investments more attractive, forum participants concluded.