Core Insights - Climate change is recognized as a significant global challenge, necessitating a robust response from the insurance and reinsurance sectors to manage climate risks effectively [1][2] - The insurance and reinsurance industry is increasingly viewed as essential for economic stability and social responsibility, with climate risk management becoming a critical requirement for sustainable operations [2][3] Group 1: Climate Risk Management Strategies - The former vice chairman of the China Banking and Insurance Regulatory Commission emphasized the need for a systematic approach to integrate climate risk management into the overall financial governance framework [3] - There is a call for Chinese financial institutions to align with international standards in climate governance while maintaining unique national characteristics [3] - Financial institutions are encouraged to enhance their capabilities in identifying, assessing, and monitoring climate risks to ensure resilience against climate-related shocks [3] Group 2: Technological Innovations in Reinsurance - The reinsurance industry is leveraging technology to address climate risks, with China Reinsurance establishing a comprehensive system for managing climate change and disaster risks [4] - Advanced technologies such as artificial intelligence and data sharing are being utilized to redefine and understand climate risks, facilitating a shift from traditional risk-bearing to proactive risk management [4] - The reinsurance sector aims to enhance its risk resilience through precise data quantification, portfolio management, and collaboration with various institutions [4] Group 3: Functions of Reinsurance - Reinsurance plays a crucial role in enhancing underwriting capacity by allowing primary insurers to transfer excess risks, thereby strengthening overall insurance coverage [5] - It aids in risk forecasting by utilizing global data and expertise to provide early warning signals to insurers and society [5] - Reinsurance supports green transformation efforts, contributing to improved ecological conditions and reducing disaster risks associated with climate change [5][6] Group 4: Future Goals and Action Plans - China Reinsurance has outlined a clear development path in its "Action Outline for Responding to Climate Change (2025-2035)," aiming to become a leading player in climate risk management within the next decade [7] - The outline sets ambitious goals for enhancing technological capabilities, customer service, and research innovation in climate risk management by 2030 [7] - A total of ten action initiatives have been proposed to improve national disaster insurance design, elevate climate risk protection levels, and engage in global climate governance [8]