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🌍 '''Green insurance''' is a broad term encompassing [[Definition:Insurance | insurance]] products, underwriting practices, and investment strategies that support environmental sustainability, facilitate the transition to a low-carbon economy, or address risks arising from ecological degradation and [[Definition:Climate risk | climate change]]. Unlike a single policy form, green insurance spans multiple lines — from [[Definition:Environmental liability insurance | environmental liability]] and [[Definition:Renewable energy insurance | renewable energy project]] coverage to [[Definition:Carbon credit insurance | carbon credit insurance]], [[Definition:Green building insurance | green building]] endorsements, and parametric products triggered by environmental events. The concept also extends to how insurers manage their own operations and investment portfolios, reflecting commitments under initiatives such as the [[Definition:Principles for Sustainable Insurance (PSI) | UN Principles for Sustainable Insurance]] and the Net-Zero Insurance Alliance.

⚙️ On the product side, green insurance works by creating risk transfer mechanisms tailored to emerging environmental exposures and clean-technology ventures. A [[Definition:Renewable energy insurance | wind farm developer]] in Northern Europe may purchase construction, operational, and revenue-protection coverage specifically structured for turbine technology risks. A manufacturer investing in pollution-control equipment might secure an [[Definition:Environmental impairment liability (EIL) insurance | environmental impairment liability]] policy that covers both gradual contamination and sudden pollution events. In China, the government has actively promoted green insurance through mandatory [[Definition:Environmental pollution liability insurance | environmental pollution liability]] requirements for high-risk industries — a regulatory approach that reflects a broader trend of using insurance mandates to internalize environmental costs. [[Definition:Underwriter | Underwriters]] in this space must assess novel technologies, evolving regulatory standards, and long-tail environmental liabilities, often drawing on specialized [[Definition:Loss adjustment | loss adjustment]] expertise and emerging [[Definition:Climate modeling | climate modeling]] capabilities.

🌿 The significance of green insurance extends well beyond individual product lines. As governments worldwide tighten emissions standards, enforce biodiversity protections, and mandate climate-related financial disclosures — through frameworks such as the EU Taxonomy, the UK's climate reporting requirements, and the ISSB sustainability standards — insurers face pressure to integrate environmental considerations into every aspect of their business. [[Definition:Reinsurer | Reinsurers]] increasingly evaluate [[Definition:Cedant | cedants]]' climate strategies when setting terms, and [[Definition:Rating agency | rating agencies]] factor environmental governance into creditworthiness assessments. At its most ambitious, the green insurance movement aims to redirect the industry's enormous balance sheet — one of the world's largest pools of institutional capital — away from carbon-intensive assets and toward sustainable investments, making the insurance sector a catalyst for the broader economic transition rather than merely a passive risk absorber.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Climate risk]]
* [[Definition:Environmental liability insurance]]
* [[Definition:Renewable energy insurance]]
* [[Definition:Green building insurance]]
* [[Definition:Principles for Sustainable Insurance (PSI)]]
* [[Definition:Carbon credit insurance]]
{{Div col end}}

Definition:Green insurance - Revision history

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