The U.S. property and casualty industry may be nearing a crossroads in its approach to climate change, perhaps prompting a more proactive strategy on the part of individual carriers and insurance associations to limit the threat to the environment and company bottom lines over the long term.

The causes, pace, and repercussions of climate change may remain controversial for some. However, since it is often insurers that have to pay for the increasing frequency and severity of weather-related damages, delay in responding due to skepticism might prove costly. Indeed, it would be prudent for carriers to prepare for the worst when it comes to climate change, just in case the consensus of the vast majority of scientists in the field prove to be correct.

U.S. insurers and their associations have long been at the forefront in terms of adaptation to the effects of shifts in weather patterns, testing disaster-resistant construction materials and techniques while advocating stronger building codes, updated flood mapping, and more hazard-sensitive zoning laws for property development. A number of insurers have also looked to support sustainability efforts by issuing new types of “green” insurance products that facilitate construction of more environmentally friendly buildings and retrofitting to upgrade existing facilities.