Core Viewpoint - Climate change poses increasing challenges for insurance companies, with rising frequency and intensity of extreme weather events leading to higher claims and costs. The industry must shift from passive claims management to proactive defense by building a "climate immune system" [1]. Group 1: Climate Risk Management - Climate scenario analysis is a key tool for insurance companies to predict long-term climate trends and develop response strategies [1]. - Regulatory bodies are increasingly emphasizing climate risk scenario analysis and stress testing, pushing the industry from qualitative assessments to quantitative management [1][2]. - The International Sustainability Standards Board (ISSB) mandates disclosure of processes for identifying, assessing, prioritizing, and monitoring sustainability-related risks and opportunities [2]. Group 2: Importance of Climate Risk Management - Enhancing risk management capabilities is crucial as climate risks can lead to financial risks, necessitating improvements in climate risk management mechanisms [7]. - Insurance companies should leverage new opportunities and challenges in global climate risk management practices to enhance their international competitiveness [8]. - The insurance industry can contribute valuable insights and experiences in addressing climate risks, aligning with China's commitment to carbon neutrality [9]. Group 3: Tools and Strategies for Climate Risk Management - Companies should develop climate risk analysis tools that integrate traditional catastrophe models with forward-looking climate scenarios [10][14]. - It is essential to incorporate climate risk management into the overall risk management framework and processes of insurance companies [15]. - Increasing insurance coverage for climate change-related risks is necessary, as the current market shows gaps compared to international standards [16]. Group 4: Innovative Risk Mitigation Measures - Insurance companies should explore innovative risk transfer strategies, such as catastrophe reinsurance and insurance-linked securities, to mitigate potential losses from disasters [17]. - Adjusting insurance premiums can incentivize clients to enhance their resilience against climate risks, guiding them to take proactive measures [18].