Zurich's Global Climate Initiative

Launched in January 2008, the primary focus of Zurich’s market-focused global Climate Initiative is to understand the emerging weather, financial and regulatory risks associated with climate change, and to develop products and services that help customers cope with these risks.

Three-pillar approach:

1. Global approach – Climate Office:

Internal office that drives understanding of climate-related risks across its businesses and is fully embedded in Zurich’s underwriting infrastructure. The office is headed by Global Chief Underwriting Officer Mike Kerner with Lindene Patton as Climate Product Officer and Elpida Constantinou as Climate Program Officer.

2. Strategic and operational advisors – Climate Change Advisory Council (CCAC):

The CCAC consists of both internal functional leaders and external advisors. The CCAC reports to Zurich’s Group Management on strategic and operational issues associated with climate change. Advice will be rendered at both formal meetings and on an informal dialogue basis.

In January 2008, Zurich announced the first two external members of the CCAC: former US Congressman Sherwood Boehlert, and Ernst Ulrich von Weizsäcker, Dean of the Donald Bren School of Environmental Science & Management at the University of California, Santa Barbara.

3. Applied research – Climate Research Partnerships:

Strategic collaboration with organizations and institutions, such as The Bren School of Environmental Science & Management at the University of California, Santa Barbara, to examine climate change-related economic, financial and policy issues.

Activities

Zurich offers products and services that are responsive to market demands:

Products delivered to date:

Motor:

• Discounts for Hybrid Vehicles

Carbon Credits:

• Political Risk Coverage for Carbon Credits
• Carbon Credit Securitization for Multilateral and Multinational Banks
• Lending to Clean Development Mechanism (CDM) Projects

Alternative Energy: full suite of p/c coverage

• Solar
• Wind
• Hydropower
• Biomass
• Geothermal

Solar Panels:

• Insurance for recovery, buyback and disposal of solar panels (WEEE Directive)

Property Coverage:

• Green Re-Build Extensions
• Off-Grid Power Business Interruption extension

Directors and Officers:

• Coverage extension for climate-related claims

Products in process or under consideration

Motor:

• Pay-As-You-Drive Auto Insurance (in process)

Alternative Energy:

• Wave / Tide (under consideration)

Green Wrap:

• General Liability / Worker Compensation / Property

Insurance for Green Building Projects (in process)

Energy Conservation (under consideration)

Carbon Capture and Sequestration (in process)

Water Re-Use / Storm Water Run-Off (in process)