AS CLIMATE-RELATED DISASTERS SURGE, insurance is becoming more expensive and harder to find, and many individuals, businesses and communities are experiencing a growing “insurance gap.”
“By early September, the U.S. had already experienced 20 weather and climate-related disasters, each with losses of more than a billion dollars. That’s more than double the annual average of 8.5 disasters from 1980 to 20231,” says Ariana Chiu, wealth management analyst for the Chief Investment Office, Merrill and Bank of America Private Bank. In response, public-private partnerships (P3s) are stepping up to invest in new infrastructure projects designed to be more resilient to natural disasters.
In the above video, Chiu highlights some of the potential sustainable and impact investing opportunities for investors interested in helping to create a more resilient world.
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1National Oceanic and Atmospheric Administration, “Billion-Dollar Weather and Climate Disasters.”
Important disclosures
The opinions expressed are as of 10/21/2024 and are subject to change.
Investing involves risk, including the possible loss of principal.
Past performance is no guarantee of future results.
Sustainable and Impact Investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values-based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.
Investments in Infrastructure Assets will be subject to risks incidental to owning and operating infrastructure projects, including risks associated with the general economic climate, geographic or market concentration, government regulations and fluctuations in interest rates. The industries targeted for investment may be highly regulated by governmental agencies. Such regulations may impact an investor’s ability to acquire, dispose of and/or manage investments.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
