The world has long since passed the point at which a gradual and essentially smooth economic transition to achieve the Paris goals and keep global temperature increases below 1.5°C was possible. As a result, the trade-offs between affordability and insurability – and between our current and sustainable lifestyles – are increasingly challenging. The transition is still possible: But the necessary trade-offs will not be painful or expensive. And the lives of every individual and business will be affected. For individuals, the way we consume, live and save must change. While the responsibility for making the necessary changes falls on each individual, supportive policies and measures are essential.

• Consumption: High carbon prices are needed to ensure that the green premium paid for climate-friendly products disappears
• Lifestyle: Influence behavior with nudges and pricing, as well as adequate infrastructure, from public transportation to comprehensive climate impact information
• Living spaces: Ensure risk-appropriate pricing to incentivize risk prevention and adaptation
• Savings: Incentivize long-term savings with tax breaks and subsidies (Allianz SE)