Figure 2. Blue economy physical and transition risks and associated insurance products

Floods, heavy rains, typhoons, tsunamis and other catastrophes may damage coastal and maritime infrastructure, ports and ships.

Potential pollution caused by water treatment facilities, water infrastructure, ship, ports and new offshore energy plants.

Equipment operation failure, explosion, fire and safety accidents can be caused by poor construction or inadequate maintenance.

Rising sea level and acidification accelerates the corrosion rate of ships and port infrastructure, and can shorten the lifespan of assets.

Businesses are faced with a constantly changing regulatory environment and the resulting litigation or liability risks.

Patent and intellectual property rights infringement or litigation disputes could cause relatively high losses to water efficiency enterprises.

Ocean- and water-friendly industries are exposed to risks at the manufacturing stage, and potential product quality and safety problems.

Consumers, enterprises and investors pay attention to carbon emissions and may incorporate Environmental, Social and Governance principles in their decisionmaking.