Zurich considers lowering insurance premiums to reward climate action

Essays by Eric Worrall

Does Zurich charge too much? If Zurich has enough money idle to reward climate action, maybe people should ask for a discount?

Insurers can cut premiums for climate action: Zurich President Summerhayes

Alex Vickovich rich editor
January 30, 2023 – 5 a.m

Former regulator Geoff Summerhayes said providing incentives to reduce carbon emissions, such as lower premiums, would be a key focus of his tenure as chairman of the company. Swiss insurance giant Zurich’s Australia.

Mr. Summerhayes said he was drawn back to the insurance industry in part because of the industry’s broader societal role in helping to mitigate key societal risks, including climate change.

“The insurance industry needs to recognize where progress has been made with consumers and/or businesses in those mitigations… and recognize that in the premiums we are charging customers,” he said. that item.

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Why do I think the green customer discount is proof Zurich can charge lower premiums to their customers?

Why – climate-friendly actions like adding solar panels to your roof or building a few wind turbines don’t reduce the risk of a customer filing a claim. If so, renewables could increase insurance risk. Solar panels can catch fire and wind turbines can fall and cause damage to property and innocent bystanders.

The turbine fell into the truck;

fire solar panels on the roof;

If the new chairman of Zurich Insurance feels his company has enough cash to lower prices for arbitrary reasons like a green thank you, then the obvious inference is that either they are charging too much and excess returns to provide an arbitrary discount for actions without significant effect on insurance risk. Either that, or they’re cross-subsidizing any additional risks the green customer takes from someone else’s premium.

Perhaps I have misunderstood, and there is another explanation for why Zurich feels it can reduce prices arbitrarily. But if I were a Zurich customer outside of the magic circle of eco-friendly customers, I would call my insurance agent right now and ask for a discount on my own premiums. .


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