Nature degradation is already increasing the cost of climate-related disasters. Where marine and coastal habitats, wetlands, floodplains, forests and healthy soils are lost or degraded, storms, floods, landslides, droughts and wildfires can become more severe and extensive. For insurers, this means rising and more volatile claims, greater loss uncertainty, and growing challenges in assessing risk. When insurance is unaffordable or unavailable, losses fall on households, businesses, lenders, and public budgets, threatening financial stability and fiscal resilience. 

Prepared by the PSI Working Group for Nature for the 17^th Conference of the Parties (COP17) to the Convention on Biological Diversity (CBD), this short briefing sets out why nature should be viewed not only as an environmental asset but as a form of critical infrastructure for climate resilience. Underpinned by the PSI Climate-Nature Nexus Atlas, a synthesis of the scientific literature developed with 50 insurers, reinsurers and brokers, it demonstrates why ecosystem extent and condition are relevant to climate-related hazards and losses, making the case for closer alignment of biodiversity action, climate adaptation and mitigation, and disaster risk management. 

The briefing is intended for CBD COP Parties and negotiators, environment and finance ministries, insurance supervisors, development finance institutions, insurers and public risk carriers. 

Acknowledgements and funding

Led by the PSI Working Group for Nature, the PSI Climate–Nature Nexus Atlas was developed with support by the International Climate Initiative (IKI) of the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) via the United Nations Development Programme (UNDP). 

It was developed with the financial support of the Swiss State Secretariat for Economic Affairs (SECO) under the From Awareness to Action: ENCORE Phase II project. 

Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE) is a free online tool that helps organizations explore their exposure to nature-related risk and take steps to understand their dependencies and impacts on nature.