Green insurance a promising new climate opportunity – Academia

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Hygea Marwany (The Jakarta Post)

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Jakarta   ●  
Sat, July 8, 2023

In recent years, green loan disbursement and the issuance of green bonds in Indonesia have continued to rise as awareness of climate change increases. However, green insurance product development in Indonesia is experiencing little growth.

Green insurance is more than just a sustainable insurance solution; it contributes to society by accelerating the sustainable transformation of the global economy. Therefore, insurance companies play an important role in promoting sustainability and climate resilience by underwriting decisions and investment choices, and by engaging clients on environmental, social and governance (ESG) practices.

At a global level, insurance products tend to concentrate on energy efficiency, including clean energy, hybrid vehicles, and green building certification, although their nature varies widely. Green insurance products are already developed in Indonesia, ranging from agricultural insurance, fishery insurance, earthquake insurance, soil moisture index insurance, etc.

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