Climate change is no longer a distant threat - it’s an immediate business risk, particularly for the insurance sector. Rising sea levels, wildfires, hurricanes, and other extreme weather events are not just affecting policyholders; they are forcing insurers to rethink their entire approach to risk assessment, underwriting, and claims processing.
But adapting to climate risks isn’t just about updating policies and predictive models. It’s about hiring the right people.
Insurance firms must now recruit leaders and specialists who understand the complexities of climate change, sustainability, and regulatory pressures. This shift is reshaping hiring practices, leading to a surge in demand for executives with expertise in environmental science, catastrophe modelling, and ESG (Environmental, Social, and Governance) compliance.
In this blog, we explore how climate change is transforming insurance hiring, the emerging roles shaping the industry, and the strategies insurers can adopt to close the growing climate talent gap.
The Growing Impact of Climate Change on Insurance Hiring
Climate-driven disasters are becoming more frequent and severe. In 2023, natural catastrophes led to USD 280 billion in economic losses, with USD 108 billion (40%) covered by insurance, according to Swiss Re. As extreme weather events grow more unpredictable, the financial impact continues to rise.
These escalating risks are forcing insurance companies to shift their focus in several ways:
- Enhanced Risk Assessment: Traditional actuarial models are struggling to keep pace with the unpredictability of climate-driven disasters. Firms need specialists who can integrate real-time climate data into risk assessments.
- Innovation in Insurance Products: The rise of parametric insurance, which uses real-time data triggers for pay-outs, requires expertise in climate science and catastrophe modelling.
- Stricter Regulatory Compliance: New regulations are pushing insurers to integrate climate risk into their financial disclosures, necessitating new hires with regulatory expertise.
As a result, the demand for professionals with deep expertise in climate risk is skyrocketing, especially in markets most affected by climate change, such as the UK, US (hurricanes, wildfires), Europe (floods, storms), and APAC (typhoons, rising sea levels).
How Different Insurance Sectors Are Adapting
Property & Casualty (P&C) Insurance
P&C insurers are on the frontlines of climate risk. With rising claims from floods, wildfires, and hurricanes, they need more sophisticated risk models and specialised talent to manage exposure.
- Increased Demand for Data Scientists: Insurers are investing in AI and machine learning to refine catastrophe modelling and improve predictive analytics.
- Expansion of Underwriting Talent: More underwriters now require expertise in climate science to assess environmental vulnerabilities.
- Product Innovation Specialists: The demand for parametric insurance experts is growing as insurers explore alternative risk transfer models.
Reinsurance
Reinsurers are seeing mounting pressure due to higher capital requirements and increasing catastrophic losses. They are shifting hiring priorities to:
- Climate-Focused Risk Officers: Executives with a deep understanding of climate risk modelling are now critical for reinsurance strategy.
- ESG and Sustainability Leaders: Many reinsurers are committing to net-zero targets, requiring specialists in green finance and ESG reporting.
- Actuarial Talent Specialising in Climate Analytics: The complexity of climate-related claims is driving a need for actuaries with expertise in climate projections.
Life & Health Insurance
Climate change isn’t just impacting property - it’s affecting human health. Rising temperatures and air pollution contribute to respiratory illnesses, heat strokes, and disease outbreaks, all of which influence life and health insurance underwriting.
- Actuaries and Underwriters with Environmental Health Expertise: The ability to assess long-term climate-related health risks is now a critical skillset.
- Preventative Risk Specialists: Insurers are looking for talent who can integrate preventative healthcare measures into policy offerings.
The Rise of Climate-Focused Leadership: Emerging Executive Roles
As climate risks escalate, entirely new roles are emerging within insurance firms to manage environmental exposure. These roles are no longer optional but essential for forward-thinking insurers.
Chief Sustainability Officers (CSOs)
Traditionally found in corporate sustainability teams, CSOs are now integral to insurance firms. Their responsibilities include:
- Developing ESG strategies aligned with evolving regulations.
- Leading corporate sustainability initiatives.
- Advising underwriting teams on sustainable risk models.
Climate Risk Analysts
This role is increasingly in demand, as insurers seek to strengthen their climate risk intelligence. Responsibilities include:
- Integrating climate science into predictive models.
- Analysing extreme weather event probabilities.
- Assessing long-term financial exposure to environmental risks.
Parametric Insurance Specialists
With traditional insurance struggling to keep up with climate volatility, parametric insurance has gained traction. Specialists in this field focus on:
- Designing trigger-based policies for climate-related events.
- Leveraging data sources like satellite imagery and IoT sensors.
- Ensuring rapid claims pay-outs based on predefined parameters.
Regulatory Compliance Leaders
With increasing ESG reporting mandates, insurance firms need compliance experts who specialise in climate-related regulations, such as:
- NAIC Climate Risk Disclosure regulations in the US.
- EIOPA’s sustainability guidelines in Europe.
- APAC's regional climate resilience mandates.
Regulatory Pressures: How Climate Compliance is Driving New Hiring Needs
Governments and regulatory bodies are holding insurers accountable for climate risk management. This regulatory pressure is driving hiring in compliance, ESG, and risk assessment.
- United Kingdom & Europe: The European Insurance and Occupational Pensions Authority (EIOPA) has issued guidance to support the insurance sector in managing sustainability risks. This includes integrating sustainability considerations into governance, risk assessments, and prudential frameworks, ensuring that insurers adequately address environmental and social factors in their operations.
- United States: The National Association of Insurance Commissioners (NAIC) has implemented a Climate Risk Disclosure Survey. This tool requires insurers to annually disclose their assessment and management of climate-related risks, enhancing transparency and aligning with international frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD)
- APAC: While specific regulations vary across the Asia-Pacific (APAC) region, there is a notable trend of countries implementing climate resilience and sustainability reporting requirements. For instance, Australia has introduced a climate-related financial disclosure regime, effective from January 2025, mandating large companies to report on climate-related financial risks and opportunities. This reflects a broader movement within APAC towards enhancing corporate transparency and accountability in environmental matters.
These developments mean that insurance firms need leaders who can navigate climate-related compliance challenges, making expertise in sustainable finance and environmental law highly desirable.
The Future of Insurance Talent in a Climate-Driven World
Climate change is fundamentally reshaping the insurance workforce. Companies that proactively adapt their hiring strategies will gain a competitive advantage in managing climate-related risks.
The need for forward-thinking, climate-savvy leadership has never been greater. To stay ahead, insurers must:
- Invest in climate-specific executive hiring.
- Expand their talent pipeline to include non-traditional industries.
- Emphasise ESG and sustainability expertise at all levels of leadership.
At Eliot Partnership, we understand the evolving demands of the insurance sector. Whether you’re looking for executives who specialise in climate risk, ESG, or sustainability, our team connects you with the leaders who can drive your business forward. Get in touch to future-proof your leadership team today.
