INNOVATION OF INSURANCE SERVICES IN CONDITIONS OF FORMATION «CLIMATE ECONOMY»

Abstract

The article deals with the impact of global climate change on the development of the insurance market. The necessity of formation of «climate economy» as the quintessence of human and nature in the globalized economic environment is substantiated. The risks of changing climatic conditions of the economy are gradually becoming more apparent. This is expected to have a significant impact on business expectations and economic performance. At the same time, the role of the insurance market as a preventer of crisis phenomena and climate risks is growing. The main economic risks are identified: physical risks of climate change, transitional and liability risks and directions of development of the insurance services market. Key initiatives identified to raise awareness and accelerate response to climate change risks. Climate risk must be a top foreign policy priority. Climate change prevention requires the use of the capacity of government agencies and the creation of cross-sectoral and interagency working groups. The peculiarities of the activity of insurance companies in climate change are investigated. It has been proven that the insurance industry is increasingly able to form a «climate economy» and should help society to deal with climate risks. Insurance companies should focus on promoting consumer awareness of risks and developing the availability of insurance products. It is advisable to use preventive information and behavioral economics approaches when distributing insurance products. It has been proved that special attention should be paid to the development, support and implementation of product innovations in the insurance market in climate change. This is an important aspect of promoting the instruments of climate economy development. The global nature of reinsurance markets makes it possible to diversify risks, reducing overall losses. The feasibility of introducing preventive measures in the activities of insurers to improve the assessment of the effects of climate change and manage the risks of climate change is substantiated.