Role of the Insurance Industry in the Perception of Climate Change Impacts and the Development of Insurance Products in Iran

Aims: Iran is one of the regions affected by climate change and its consequences. Knowledge of impacts and damages of natural and climatic disasters, besides the development of related insurance products, are among the factors that play a significant role in a better understanding of climatic threats and climate change adaptation and mitigation. Therefore, this research was carried out in order to examine the status of Iran’s insurance industry in understanding the effects of climate change and developing related insurance products. Materials Methods: The research method for this paper is applied research that consists of documentary studies and mixed exploratory studies in terms of the research strategy. In order to examine the international experiences of the world insurance industry in the field of climate change, library studies were used, and to examine the current situation of the Iranian insurance industry in understanding the phenomenon of climate change and insurance products, a questionnaire was used. Findings: Evidence of climate change and insurance products used in selected developed and developing countries were first studied, and then the questionnaire results were analyzed. Findings show the deep and extensive attention of the insurance industry to the phenomenon of climate change, the need for requirements such as providing detailed statistical analyzes of the number of damages and effects caused by the occurrence of climate change, clarifying the harmful effects of climate change on profitability, considering environmental issues and biological changes in the macro policies of the country, creating fundamental thinking and attitude regarding climate change in the country. So far, a comprehensive analysis of Iran’s insurance industry’s understanding of climate change and the use of various insurance products has yet to be done. This research was done to solve this research gap so that its results will be a guide for the insurance industry managers. Conclusion: The results indicate that some insurance companies in Iran have accepted the climate change phenomena by observing the intuitive effects of climate change and its impact on the company’s activities. In addition, climate change has increased customer demand for some insurance products, and the consequences of climate change have caused the need to develop and upgrade the products and use new insurance products.