Analysis of the Impact of Climate Change on the Financial Performance of Insurance Companies in Russia

This research aims to contribute to the development of a sustainable insurance industry in Russia by examining the impact of climate change on financial performance. Based on a literature review, we conclude that climate change can significantly affect the financial stability of insurance companies.The practical significance of this research lies in its benefits for both insurance companies and regulatory bodies. Insurance companies will be better equipped to assess climate-related risks in their business operations if they understand the significance of climate change. Regulators, in turn, will be able to make informed decisions based on the findings of this study and implement appropriate regulations. To conduct this research, we examined 116 insurance companies operating in 40 different regions of Russia. We analyzed their financial performance and identified a negative correlation between the return on equity and average January temperatures. This finding suggests that insurance companies in regions with colder climates may be more financially stable than those in warmer regions.Our findings have important implications for the insurance industry and society as a whole. By understanding the impact of climate change, insurance companies can better prepare for potential risks and ensure the long-term sustainability of their operations. Regulators can use our findings to develop policies that promote resilience and sustainability in the insurance sector.An important part of the study is the review and analysis of the long-term risks faced by Russian insurance companies due to climate change.