19
IMPLICATIONS FOR INSURERS
LEGAL ACTION: WHO, WHAT, WHY?
For insurers, Brook points out that exposure could affect both sides of the balance sheet: on the risk/underwriting side (in terms of the physical, transition and liability risks insureds face), and on the asset side (in terms of how those risks could impact them directly as major asset owners themselves and asset managers for others). There are opportunities for the insurance industry, uniquely placed as it is to offer an in- depth understanding of climate risks to assist the markets in understanding, mitigating and transferring that risk. Brook suggests that dialogue between underwriters and asset managers is vital to share insight. This is discussed in more depth later in this report.
–– Securities class actions – where groups of shareholders bring actions against companies and senior individuals within them to compensate them for alleged losses incurred –– Derivativeactions –whereshareholders bring actions on behalf of the company against the board, alleging breach of fiduciary duty –– Tort claims on the basis of product liability arguments claiming that an alleged “defective product” caused environmental damage resulting in current losses or future costs to put right or guard against the effects of climate change
Made with FlippingBook - Online magazine maker