Insurance Companies’ Responses to Climate Change: Adaptation, Dynamic Capabilities and Competitive Advantage

Kristin Stechemesser (), Jan Endrikat (), Nico Grasshoff () and Edeltraud Guenther ()
Additional contact information
Kristin Stechemesser: Chair of Environmental Management and Accounting, Faculty of Business and Economics, Technische Universit&aauml;t Dresden, Münchner Platz 1/3, Dresden 01062, Germany.
Jan Endrikat: Chair of Management Accounting/Controlling, Technische Universit&aauml;t Dresden, Dresden, Germany.
Nico Grasshoff: Chair of Environmental Management and Accounting, Faculty of Business and Economics, Technische Universit&aauml;t Dresden, Münchner Platz 1/3, Dresden 01062, Germany.
Edeltraud Guenther: Chair of Environmental Management and Accounting, Faculty of Business and Economics, Technische Universit&aauml;t Dresden, Münchner Platz 1/3, Dresden 01062, Germany.

The Geneva Papers on Risk and Insurance - Issues and Practice, 2015, vol. 40, issue 4, 557-584

Abstract: Drawing on the dynamic capability view, we analyse how insurers adapt to climate change impacts and how adaptation relates to corporate financial performance. Based on a comprehensive literature review, we deduce seven categories of adaptation measures associated with three dynamic capability dimensions of climate change adaptation (i.e. climate knowledge absorption, climate-related operational flexibility and strategic climate integration). Using this framework, we conduct a content analysis of insurers’ adaptation efforts as reported to the Carbon Disclosure Project. Regression analysis reveals positive relationships between climate knowledge absorption and return on assets (ROA), climate-related operational flexibility and ROA, and between the total number of adaptation measures and ROA.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.palgrave-journals.com/gpp/journal/v40/n4/pdf/gpp20151a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/gpp/journal/v40/n4/full/gpp20151a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:gpprii:v:40:y:2015:i:4:p:557-584

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41288/PS2

Access Statistics for this article

The Geneva Papers on Risk and Insurance - Issues and Practice is currently edited by Christophe Courbage

More articles in The Geneva Papers on Risk and Insurance - Issues and Practice from Palgrave Macmillan, The Geneva Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().