THE WICKED PROBLEM APPROACH BENEFITS THE INSURANCE INDUSTRY
Global Climate Collaboration is an international technical collaboration to determine viable paths forward to resolve global warming and its climate change effects. The flagship project is Global Solutions and Outreach Programs which will utilize the Wicked Problem Approach across various sectors. One such sector is insurance.
Perhaps the greatest risk in the insurance sector deals with investments in climate solutions to achieve the transition to a net-zero-carbon global economy. The ESG (Environmental-Social-Governance) criteria are helpful but not sufficient. Decisions on trillions of dollars in climate solutions investments must be made soon. Application of the Wicked Problem Approach can help to reduce the considerable uncertainty in those investment decisions.
Many are working within the insurance sector to address the risks associated with climate change, such as the Sustainable Markets Initiative – Insurance Task Force championed by Prince Charles. This is an admirable project that resolves to be a catalyst for action to help create a more sustainable future through the risks being managed and the capital invested.
There is discussion within the insurance industry on the benefits of partnerships between the insurance sector and the public, specifically with respect to challenges associated with climate change. Global Climate Collaboration and the Wicked Problem Approach can help. It will provide a structured approach to insurance sector decisions, resulting in a much better understanding of the complexities of necessary transitions in energy, industry, and commerce.
Engineering analysis through the iterative Wicked Problem Approach is recommended to achieve the transition to a net-zero-carbon global economy.